Could Incognito ever be sanctioned like Tornado Cash?

Hi @Jared,

On your next call with the Incognito Core Team, could you please ask them if they done an risk assessment as to whether they could ever become a target of any sanctions like what happened to Tornado Cash?

I know Incognito is different to a service like Tornado Cash, and is a tiny project at the moment. But given that privacy services are being cracked down upon by Governments (as they want to push their upcoming track-n-trace CDBCs), once they discover coins could be laundered through a service (like Incognito) they will find ways to shut this project down if if is not truly decentralised.

I also wouldn’t want anyone on the Incognito core team targeted like the founder of Tornado Cash. So are there any protections in place?

I saw the following article (posted yesterday) that prompted this question as RenBridge could possibly be the next on the US sanctions list -

I would be interested in what the Incognito Core Team think about this and how they would rate between (1 and 10):

  • 1 = Zero chance
  • 10 = Very High chance

chances of US Sanctions coming for Incognito in the future and the reasoning behind the score.

Does anyone else share this concern?
If so, please feel free to chime with your comments below.

P.S. My intention is not to scare anyone. I think privacy is 100% needed as a basic human right and I’m very committed to this project. Just want to see if this is being discussed by the core team and whether it is a concern at all.

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Hey @Linnovations, thanks for bringing the topic up. The team is following closely everything around the Tonardo’s sanction as well as discussing internally what we will do to mitigate the risk.
We will be sharing our thoughts and actions next week.

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You know what is perfectly legal in one country, may be a crime in another. So getting under the sanctions is a rhetorical question. Services that protect their users can always fall under the sanctions of states that are interested in everything about their residents and citizens. They are ready to climb into them even in shorts :)))

The sanctions of the states other than USA are not so important since USA is only superpower and USD is a world reserve currency. So it is a really concrete question :))

Disclaimer: I’m not a US citizen.

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It would also be interesting to know what happens when someone sends, for example, 1 “privatized” ETH from Tornado Cash to their ETH “Shield Address”. Is this then “burned” or what would happen?
Maybe someone from Incognito can answer this reliably?

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