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HomeLaw & PoliticsKraken CEO Jesse Powell opposes US sanctions imposed on Tornado Cash

Kraken CEO Jesse Powell opposes US sanctions imposed on Tornado Cash

Kraken CEO Jesse Powell has spoken out against new US sanctions imposed on addresses associated with the Tornado Cash currency mixer.

Kraken Leader Defends Tornado Cash

During an interview on August 16 with Bloomberg TV, Jesse Powell stated that individuals “have a right to financial privacy” and many users use Tornado Cash for legal purposes.

Kraken CEO Jesse Powell further queried if the penalties would withstand a constitutional challenge, alluding to Coin Center’s intention to sue the Treasury and OFAC on freedom of speech violations.

On the other hand, Powell feels that society’s reaction is exaggerated. He stated that, while the removal of Tornado Cash’s GitHub source was needless, he doesn’t really believe these events are indicative of a larger attack on open-source initiatives.

However, he claimed that the penalties were a “knee-jerk response” and a “hurried reaction” to TerraUSD’s downfall, and also that authorities overreacted in order to safeguard the community.

Kraken CEO Jesse Powell further stated that, notwithstanding his protests, Kraken would ban transfers both from and to Tornado Cash accounts. Powell told Bloomberg:

“We would restrict withdrawals to any Tornado addresses, and we would very certainly freeze any funds arriving in from a Tornado address” .

Kraken CEO Jesse Powell’s objection to sanction

Based on his previous objection to increased regulation, Powell’s objection to penalties is anticipated. In February, he opposed the Canadian government’s emergency actions targeting cryptocurrency exchanges. That same month, at the request of Ukraine’s Vice Prime Minister, Mykhailo Fedorov, he declined to block Russian accounts.

Kraken CEO Jesse Powell is hardly the only crypto expert to condemn Tornado Cash sanctions. The penalties have also been attacked by Coinbase CEO Brian Armstrong and Circle CEO Jeremy Allaire, who argue that they targeted a tool instead of a person or company.

On August 8, the US Treasury implemented restrictions on Tornado Cash addresses for the first time. On August 12, one developer, Alexey Pertsev, was detained in the Netherlands by Dutch police.

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