Tornado Cash sanctions are a ‘knee-jerk reaction’ to Terra crash, says Kraken CEO #web3grandpappa
Jesse Powell, the CEO of cryptocurrency exchange Kraken, has criticized government sanctions against Ethereum (ETH) coin mixing service Tornado cash, terming it a hasty reaction. Speaking during an interview with Bloomberg Technology on August 16, Powell stated that the regulatory sanctions are not well thought through, suggesting that they are a ‘knee-jerk reaction’ to protect consumers, especially after the infamous Terra (LUNA) crash.
According to Powell, the Tornado Cash service can be equated to freedom of speech and questioned whether the sanctions would survive a constitutional challenge. Powell maintained that individuals have a right to privacy, an element the government took away through its actions on Tornado. This comes after the Treasury imposed sanctions on Tornado Cash, accusing the platform of repeatedly failing to set effective anti-money laundering rules.#web3grandpappa