Which in turn shows it came from Tornado Cash which was put on the OFAC blacklist in August. So redox will likely have a very hard time to get this converted.
He doesn't need to get it converted though. There are enough people that don't live in the US and would be happy to get paid in ETH to work on an open source project.
In a way, it seems almost like a feature that he can't just take out and convert the money :)
By that logic US persons can't use Ethereum at all. If you withdraw ETH from Coinbase it is very likely that those coins will have passed through tornado.cash at some point.
This logic obviously doesn't hold up to even the slightest scrutiny. There's too much American money invested in Ethereum for any government agency to even seriously consider the idea of destroying it like this.
The reality right now is that there are coloured coins by default. We said this would happen back like at least five years ago, and now it is finally here. This is only the start and is essentially the doom of the libertarian case for the blockchain, and once that is out the window I see very little use for it that a normal DB of cryptographic public keys couldn't handle.
The sanctions technically only forbid future interactions with Tornado Cash contracts. However the compliance employees would get a note from Chainalysis saying that this guy received a bunch of ETH that was indirectly sourced from Tornado Cash and potentially do something about it (Kucoin Bitfinex et al would probably do nothing).
My understanding of the sanctions is that it's only the contract and a few addresses that are sanctioned. Coins that once went through tornado are fine.
I’m assuming they mean something like Monero (maybe also ZK-something). I don’t understand how it works, but enough people say they are anonymous, that I believe them ;)
When the IRS is offering $100k bounties to break the anonymous features, it sounds pretty secure. Although if there is enough interest in breaking the obfuscation, these things normally end up finding the hole.
I did think this too. I would hope that I am small enough fish that I'm not worth them wasting that backdoor on, as I assume it will be patched once revealed.
At what point do I have to stop being paranoid so that I can get anything done?
In a way, it seems almost like a feature that he can't just take out and convert the money :)