The Thinly-Veiled Attack on DEXes

DEXes are not money laundering operations, and blaming them for such is a thinly-veiled attempt at retaining centralized control over crypto.

Make no mistake, the heat THORChain is receiving is purely opportunistic.

First, Merriam-Webster defines money laundering as:

“to transfer (illegally obtained money or investments) through an outside party to conceal the true source“

In a fully-transparent DEX like THORChain, the Maya Protocol, Chainflip, etc., there is no concealment!

Everyone can see the money go in as a transparent asset, then out as another. In fact, Bitcoin is more transparent than the Ethereum originally stolen by Bybit, because you can’t use privacy smart contracts like Tornado Cash.

Blocking DEXes, neutral trade infrastructure, does nothing to stop these kinds of hacks. Notice what no one’s talking about:

-Banning custodial CEXes due to honeypot attack risk
-Implementing transaction freezing at the protocol level for Bitcoin or Ethereum
-Putting pressure/demands on the actual perpetrators of the hack to give back the stolen money

Bitcoin and Ethereum are “too big to fail” and wouldn’t be pressured to censor. And the western powers have no leverage with the DPRK. This is really their geopolitical failure.

But since DEXes are new and revolutionary, they’re used as a scapegoat, as a pretext for keeping crypto trading centralized and under government control.

Don’t fall for it.

Posted Using INLEO