Jason Gottlieb Discusses New Proof of Innocence Tool and Tornado Cash in U.S.
Jason Gottlieb was quoted in a January 28, 2023 Blockworks article entitled “Why Proof of Innocence Won’t Work for US Tornado Cash Users.” The article discussed a new tool that would provide data showing that funds of Tornado Cash users are from a legitimate source. However, there are serious doubts about whether U.S. users can legally utilize the proof of innocence tool, as Tornado Cash was placed on a sanctions list in the United States in August 2022 for allegedly allowing users (including from North Korea) to launder billions of dollars in stolen cryptocurrencies.
Jason said that the proof of innocence concept could eventually be valuable in allowing users to control their own assets and protect their privacy while being fully compliant. “For the moment, however,” he said, “interacting with sanctioned wallets, even in the name of trying out a new technology, could carry heavy penalties. Anyone considering interacting with the Tornado Cash wallets should first call a lawyer, and be prepared to hear ‘no.’”
Read the Blockworks article here.
Contacts
- Jason P. Gottlieb Partner & Chair, Digital Assets; Chair, White Collar and Regulatory Enforcement
- jgottlieb@morrisoncohen.com
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