Thread by @RanierGrant

Remember Jesse Powell made it clear he was forced to do this by Trudeau. That is the clearer point, this isn't about freedom of disassociation *it is the state forcing private companies to force people to disassociate*

https://twitter.com/ChrisBlec/status/1703557022984069364

The problem with privacy pools is it adds a huge layer of law enforcement abuse, there's no denying that. But it highlights serious serious grave issues with pure code is law. I don't think the criticisms of ameen or Vitalik are grasping the actual problem.

The problem is the West isn't going to allow monero or base layer privacy to scale. If everyone is doxxed to LEO, the more layers of association list you have, the more surface area for LEO. It's very very serious game theoretically. Seeking good faith where there is none.

Putting addresses on Sanction list is not very effective, and I doubt the US treasury will be open at all to Privacy Pools as is. Competent criminals will use real full blown Tornado, and jump to new clean addresses with or without taint.

The effectiveness of privacy pools depends on how much Ciphertrace esque software utility can be built into arbitrum, arguably not well without Rust. It has to see address taint many hops back to be effective vs Lazerus.

Unfortunately, this exact same technology can be used to ban pretty much entire continents of people, which is what OECD and Nato want to do.

You can't stop the existence of fedware and fedchain tech, it is too easy to build on arbitrum or solana, tooling kits are too advanced now. It exist along side full hard anon systems like uniswap v2 and tornado, LEO decides who is "allowed" "real" smart contract. Code isn't law.

So the question becomes, how can you have Western govs declaring entire swaths of the ethereum network de facto felony systems with no safe compliance path, treating entire aspects of the infrastructure like alphabay, licensed and contraband contracts.

@threadreaderapp unroll