Tornado Cash Founder Warns say DOJ Dey Threaten DeFi Innovation
Roman Storm, wey be co-founder of privacy mixer Tornado Cash, don warn say US Department of Justice fit go back and prosecute developers wey dey build open-source DeFi protocols as if dem no get license to do money service business. Storm been convicted for August say im dey run unlicensed money transmission service, and dis don cause gbege and fear among DeFi builders wey dey worry say similar wahala fit happen to non-custodial projects.
To respond, Ethereum Foundation and Keyring Network dey pay for legal defense for Storm and other Tornado Cash contributors with money wey them collect from zkVerified vaults. For American Innovation Project Summit, DOJ acting Assistant Attorney General Matthew G. Galeotti try calm the industry by talk say to write code without bad intention no be crime, and promise better regulatory guidance.
Even though dem talk dis thing, the case set example wey fit make talent run, slow down DeFi innovation and bring more regulatory wahala for decentralized finance projects for US.
Bearish
Storm conviction and warning dey highlight say regulators for US decentralized finance dey look the matter closely. For short term, traders fit respond by reducing risk, lessening how much dem dey put for DeFi tokens like TORN and ETH, wey fit make price go down. For long term, ongoing legal wahala fit make people shy away from developing protocols, wey go slow DeFi growth and token demand. But DOJ promises fit reduce some fear, limit how e go affect market. Overall, increased compliance risk fit mean bad news for DeFi assets till clear rules show face.