Remember that movie where Sandra Bullock crosses the entire country blindfolded because climaxing abroad means you face certain death?
This must be what it feels like to build anything with Bitcoin now.
Everyone is moving blind. The US government is taking everyone along for the ride and no one knows where we are headed. There are no instructions to read, and no rules to follow. You move an inch in the wrong direction, or you make an unfortunate blog post, or maybe you tweet at Elizabeth Warren on her bad day. You will beheaded.
Imagine that you are one of the developers of Samourai Wallet. One day, you decide that enough is enough and take off the blindfold. You have to make a concerted effort to Dealing with regulators Bring twenty of your colleagues on board. You pay big bucks and hire the best lawyers in the industry to help everyone cut through the regulatory fog.
After four months, Chopped.
Beyond the human tragedy unfolding here, this should be a cathartic moment for the industry.
We've spent the last decade trying to get regulators to agree. We asked for permission, rolled out red carpets and practically begged for consideration. Millions of dollars were donated to lobbyists and much was run by any company seeking to do business with US citizens.
If last week is any indication, it was all for nothing.
Do you think only shit coins make you strong?
Samurai men sure seem like easy choices. The inflammatory figures and bombastic statements are enough to convince the casual observer that they are guilty, albeit with mistaken thinking. It seems that openly challenging the government and inciting individuals to take control of their financial privacy is a criminal offense these days.
Even in Bitcoin circles, “moderates” said they were reckless lowlifes, so maybe they deserved it. For them, there is no need to overreact.
“There's nothing to see here.”
Back in the real world, your head starts spinning as soon as you start reading the indictment. The language is flimsy. Technical concepts are trite. Even the most sensational accusations are incredibly flimsy. One loose direct message on Twitter, a somewhat vague presentation slide, and an informal post. Given the defendant's history, I'm truly surprised they couldn't conjure something more incriminating. They may have a few aces up their sleeves but at first glance, none of them add value.
That is until you zoom out and look at the entire image. What if the distortion of reality was intentional? What if Keon Rodriguez and William Hill are the right guys for something much bigger than themselves?
We don't have to guess. There is no plot required here. The day after the Samurai Team's arrest, the US Attorney for the Southern District of New York made the matter public. In their case against Tornado Cash developer Roman Storm, American lawyers presented their arguments Answer On the defense's motion to dismiss, And boy is it a doozy. Not only were we working blindly, it was said that everyone was breaking the law all the time. A decade of FinCEN guidance? accidental.
Under the terms set forth herein, every Bitcoin transaction will likely be KYC'd. Peer-to-peer software is illegal and self-save should be banned.
Criminal motive
Don't fall for the cheap tricks of high-profile cases and punk rock developers. The United States government is not trying to prosecute criminals, but rather is seeking to reset the rules of the game and redefine the law so that everyone who does not have a license to operate is considered a criminal.
It's not just Samourai Wallet or Tornado Cash that are on trial. It's your financial freedom too.
Naturally, those among us who make a living kissing politicians' feet and have enough of a regulatory moat will try to convince you otherwise. They'll say you're not pressing hard enough. Maybe they honestly believe that if the worst happens, we too will vote ourselves out of this situation.
Some are already responding to the warning shots. On Friday, ACINQ, creators of the Phoenix Lightning wallet, announced that they would be pulling their product from US app stores.
Recent announcements from US authorities cast doubt on whether self-wallet providers, Lightning service providers, or even Lightning nodes can be considered financial services businesses and regulated as such.
– Acinq (@acinq_co) April 26, 2024
Others call the government's bluff Take a stand. Refusing customer service in the US may work in the short term to reduce one's obligations, but it also feels like putting things off down the road. The precedent set in this case represents a real risk of it being used by other countries as a basis for similar policies. Give them an inch here and they'll take a mile.
The battle has reached us and must be answered in kind. The rule of law is being challenged. The courts are being armed. For Americans, this is a battle for constitutional rights. For the rest of the world, this is a cautionary tale.
For Bitcoin users, this is an opportunity to abandon divisive rhetoric and ally against the actual enemy at hand: the state.
Pigeons: You live in a place where fighting has succeeded. The rest of us live in the rest of the world where we've been crushed.
mircea_popescu: That's a good point, yes.
mircea_popescu: But I intend to preserve this legacy.