In August 2022, the US Treasury Department placed Tornado Cash on its blacklist, prohibiting the use of the popular currency mixing service due to security issues with the protocol. Despite this, one of the creators of Tornado Cash has announced the release of a new and improved version of their controversial software, Privacy Pools. But can this new version fix the security issues that led to Tornado Cash being banned?
Privacy Pools: A More Reliable Alternative to Tornado Cash
Ameen Soleimani, one of the creators of Tornado Cash, announced the release of Privacy Pools. He thinks that this new version is much more reliable than the previous one. Indeed, it allows its users to segregate illicit funds without disclosing their transaction history. As a result, users benefit from more security and flexibility.
We fixed [Tornado Cash].
Privacypools.com v0 is now available on [Optimism].
Test the demo, but please keep in mind:
– This is experimental code
– It has not been audited
– The trust configuration is not trusted
According to Soleimani, with Privacy Pools, users can enjoy a more reliable and secure alternative to Tornado Cash. The new patched version helps protect user transactions without compromising their security and privacy.
However, some may worry that Privacy Pools make the job of regulators easier by allowing the identification of illicit funds. Yet Soleimani claims that users always have a choice whether or not to share their anonymity pool with others.
Privacy Pools is therefore not “narcware” that violates the privacy of users. Rather, it is a tool that offers more options and security for users.
The developer adds that Privacy Pools will not be the final product, and the shipping of the new app is intended to “start a conversation” and “help regulators understand a potentially more attractive balance between privacy and regulation that we didn’t even know existed a few months ago.”
Tornado Cash: continued use despite sanctions
Despite US Treasury Department sanctions against Tornado Cash, the cryptocurrency mixer is still operational.
Indeed, the immutable nature of the smart contracts that make Tornado Cash possible makes it difficult to stop using it. However, the sanctions led to a significant drop of 68% in total traffic entering the platform a few days after.
However, according to this tweetTornado Tornado Cash averaged $7.87M in deposits and $5.97M in withdrawals per week in 2023, “on track to anonymize ~$250M in 2023,” Ameen Soleimani tweeted.
Last year, Amsterdam police arrested Alexey Pertsev, creator of Tornado Cash, on money laundering charges linked to North Korean hackers. He expects a hearing in April.
Although Tornado Cash has been hit hard by money laundering accusations and regulatory restrictions, it continues to be a valuable tool for those looking to maintain their privacy and security in the crypto world. currencies. Recent developments, such as the new Privacy Pools release, could be a game-changer for Tornado Cash. Only time will tell what the future of these two tools will be and how regulators will position themselves on their use.
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