Privacy In Crypto and Beyond

One of the topics that came up during our look at the cashless society was the notion of privacy and the digital age’s erosion of it. Keeping one’s financial transactions private is a big part of maintaining a life free from unwarranted interference and it’s becoming harder and harder to do.

 

Then, not long after we’d recorded that episode, a blow was struck against crypto privacy that is still reverberating through the industry. On the 8th August, the Office of Foreign Assets Control (OFAC) - a department of the US Treasury - imposed sanctions on the Tornado Cash mixing protocol, as well as a number of wallets associated with it. This unprecedented step was taken because Tornado Cash has been used by hackers from North Korea’s Lazarus group to launder stolen crypto. It should be noted however, that, according to blockchain tracking company Chainalysis, only around 17% of the $7 billion that has passed through the protocol is thought to be related to illicit activity. 

 

The impact of these measures was immediate: the Tornado Cash website was taken down, many DeFi protocols began blocking access to wallets that had used Tornado Cash and funds in many wallets were frozen. Most disturbingly of all, one of Tornado Cash’s developers was arrested by Dutch police and was still in custody as we recorded this, nearly two weeks later. 

 

If you caught the last episode, you’ll be up to speed with what happened with Tornado Cash and the ongoing saga forms a big part of our discussion in this episode. We also talk about privacy in general, how the internet is eroding it and crypto’s role in the fight to keep prying eyes away from our finances. 

 

Privacy is a right, not a privilege, and forms a central plank of human freedom. But, like other freedoms, if we don’t fight for it, then others will take it away. If that happens, it will be much harder to get back than it ever was to hold on to.

 

We hope you enjoy the show.

 

Producer for iHeartMedia: Noel Brown

Editor: Sam Moult

 

See omnystudio.com/listener for privacy information.