Powell said that transparent people would view the sanctions as exaggerated, as they even removed the code repositories. The executive stated Kraken would block transactions from addresses associated with Tornado Cash, although he highlighted the importance of financial privacy.

Jesse Powell recently commented that the US Treasury Department had imposed exaggerated sanctions against Tornado Cash.

The CEO of Kraken highlighted that the government agency took those measures following the collapse of Terra (LUNA) in May.

The executive said that transparent people would view it as a gut reaction to what happened with UST and LUNA. He thinks regulators have exaggerated their actions to protect people by removing the code repositories.

Kraken to Freeze Funds in Compliance with the Sanctions

Powell considers that the financial privacy of users is as relevant as freedom of expression. He even suggested that Tornado Cash might survive a challenge in court.

Despite stating it favored financial privacy, Kraken is willing to comply with the sanctions. In that regard, the cryptocurrency exchange would block transactions from addresses related to Tornado Cash.

The CEO of Kraken said they would ban any address associated with Tornado Cash from making withdrawals. He added that they might freeze the funds from wallets in the cryptocurrency mixer.

The US Treasury Department sanctioned Tornado Cash, accusing it of laundering over USD 7 billion since 2019.

The Opinion of Kraken about the Position of Circle

The CEO of Kraken also judged the position of the crypto industry in the case of Tornado Cash. The executive highlighted Circle Internet Financial, the issuer of the stablecoin USDC.

Jeremy Allaire, the CEO of Circle, recently pointed out that they had frozen USDC in smart contracts of Tornado Cash. In that sense, Jesse Powell commented that having a digital currency that governments can control through unconstitutional action causes fear.

Finally, Powell decided not to comment on reports that regulators investigated the exchange for allegedly violating sanctions against Iran. Those measures ban exporting goods or services to any person or entity from that middle-eastern country.

A spokesperson for the US Treasury stated they did not confirm or comment on potential or ongoing investigations. He said that they used their tools and authorities to enforce the sanctions that protect national security.

Meanwhile, Celsius Considers New Financing Offers to Escape Bankruptcy

A lawyer of Celsius Network recently said that the firm had received cash offers to help it finance its possible restructuring.

The committee said they would meet Celsius within the following seven days while working on the upcoming case.

Celsius imposed a moratorium on withdrawals in June to protect itself from bankruptcy. The firm is now working with specialized attorneys to explore its restructuring options.

According to Bloomberg, they are weighing various financing packages from different parties. However, it is unclear whether they are equity-based or debt-based or what the terms of the deal would be.

By Alexander Salazar


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