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Seth Hertlein, VP Global Head of Policy at Ledger, and Michael Mosier, Co-Fouder of legal boutique Arktourous, Build Exante - FinCEN, Treasury, and Chief Technical Counsel at Chainalysis join us on today’s show to explain the modern financial surveillance apparatus. FATF, FinCEN, AML/KYC, OFAC...the blacklists, the greylists. How does it all work? Who makes the rules?

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TIMESTAMPS

0:00 Intro
9:10 Financial Surveillance 
13:10 Data Collection
17:10 The Bank Secrecy Act 
20:30 SARS
23:10 Understanding the Enforcers 
30:30 Goals for FINCEN
38:55 OFAC Explained 
51:11 Strict Liability 
56:26 Process of Getting OFAC SDN List 
1:00:50 Tornado Cash
1:11:05 What Should We Do? 
1:21:05 Closing & Disclaimers 

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RESOURCES

Michael Mosier
https://twitter.com/m_mosier_  

Seth Hertlein
https://twitter.com/SethHertlein  

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Not financial or tax advice. See our investment disclosures here:
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3rd Week of August, 2022

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Timestamps:

0:00 Intro

3:30 MARKETS

7:25 The Merge

https://twitter.com/RyanSAdams/status/1559150913834684418 

14:40 The S&P Price

https://twitter.com/CanteringClark/status/1559164367903637506 

16:10 Arthur Hayes Bullish

https://cryptohayes.medium.com/eth-flexive-7e1921123f64

18:00 NEWS

19:00 Tornado Cash

https://twitter.com/RyanSAdams/status/1558044593937170433 

20:00 Arresting Developers!

https://www.fiod.nl/arrest-of-suspected-developer-of-tornado-cash/

22:12 Writing Code is a Crime?

https://twitter.com/jchervinsky/status/1559534385128415235 

24:35 Coin Center Legal Analysis

https://twitter.com/jerrybrito/status/1559171083105976321

27:06 Historic Money Laundering

https://twitter.com/avsa/status/1558076159102967810 

 

31:18 Tornado Cash Backlash

https://twitter.com/MicahZoltu/status/1558012733412753408 

33:32 DeFi Backbone

https://twitter.com/AntonioMJuliano/status/1558444605271597058 

36:12 Censorship Resistance

https://twitter.com/LefterisJP/status/1558944794658873344

36:47 Soft Fork Power

https://twitter.com/ercwl/status/1559265708411965440 

47:00 Eric Wall Takes

https://twitter.com/ercwl/thread/1559678652308144129

50:24 BTC Maxi Twitter

https://twitter.com/ercwl/status/1559265708411965440/retweets/with_comments

52:47 Press X to Slash

https://twitter.com/brad_eth/status/1559355035623903233 

56:00 Selkis Metal AF

https://twitter.com/twobitidiot/status/1558849512780734472 

58:00 Toxic Maximalism

https://twitter.com/ercwl/status/1559692710822481923 

59:22 Kevin O’Leary

https://www.tronweekly.com/tornado-cash-take-down-was-crucial-kevin-oleary/

1:01:00 What We Can Do

https://twitter.com/JWVerret/status/1559470517941329920 

1:03:07 Digital Bill of Rights

https://twitter.com/RyanSAdams/status/1558481645040197632 

1:04:52 Gitcoin September 7th

https://twitter.com/RyanSAdams/status/1559565929163390979 

1:06:07 Celsius Down $3 Billion

https://twitter.com/blockworks_/status/1559290989688274944 

1:06:37 Mashinsky Trading Strategy

https://t.co/IkjtzHp8zl

1:07:27 3ac New Yorker

https://nymag.com/intelligencer/article/three-arrows-capital-kyle-davies-su-zhu-crash.html

1:10:02 Genesis CEO Exits

https://www.bloomberg.com/news/articles/2022-08-17/genesis-ceo-steps-down-as-crypto-broker-slashes-its-workforce

 

1:12:30 The Exact Merge Time

https://twitter.com/vdWijden/status/1559232749210406917

1:14:20 Gnosis Safe Airdrop

https://twitter.com/OlimpioCrypto/thread/1560284884156956677

1:16:55 OpenSea Stolen NFT Policy

https://decrypt.co/107368/opensea-changes-stolen-nft-policy-following-user-outcry

1:19:05 Sudoswap Crushing It

https://thedefiant.io/sudoswap-nft-amm

1:19:30 BendDAO Liquidation Risk

https://twitter.com/cirrusnft/status/1559954449002401792 

1:22:12 Mailchimp Crypto Crackdown

https://decrypt.co/107099/intuit-owned-mailchimp-is-banning-crypto-content-creators

1:22:50 Taiwan IPFS

https://decrypt.co/107293/taiwan-turns-to-ipfs-tech-to-thwart-cyberattacks-from-china

1:25:25 SEC Suing Dragonchain

https://cointelegraph.com/news/2017-icos-aren-t-over-yet-sec-files-suit-against-dragonchain-and-its-founder

1:27:32 Canada Crackdown?

https://twitter.com/TrustlessState/status/1560048202446999552 

1:30:30 Inflation Reduction Act

https://www.cnbc.com/2022/08/12/house-to-vote-on-inflation-reduction-act-tax-and-climate-bill.html

1:32:10 Galleon Portfolios

https://blog.galleon.community/introducing-galleon-portfolios-narrative-based-indices-65c50be51c28

1:33:20 a16z $350m in Flow with Adam Neumann

https://twitter.com/andrewrsorkin/status/1559148342013296641 

1:35:30 Dragonfly Buys Metastable

https://www.coindesk.com/business/2022/08/15/crypto-venture-capital-firm-dragonfly-buys-hedge-fund-report/ 

1:36:00 Jobs

https://pallet.xyz/list/bankless/jobs

 

1:38:00 Questions from the Nation

https://twitter.com/BanklessHQ/status/1559934036352589825

1:38:45 Staking After the Merge

https://twitter.com/mrymz_2/status/1559944361395101696 

1:40:30 Post-Merge Narrative

https://twitter.com/p3te_eth/status/1559947163832139777 

1:42:00 TAKES

1:42:20 DYOR

https://twitter.com/oooitscrime/status/1558846681747177476

1:44:25 Thanks OFAC!

https://twitter.com/valkenburgh/status/1559544321489223682

1:46:15 What David’s Bullish On

1:47:04 What Ryan’s Bullish On

1:49:45 Meme of the Week

https://twitter.com/null_eth/status/1557795334775926784

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Not financial or tax advice. See our investment disclosures here:

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On Monday, the U.S. Treasury Department made a smart contract illegal. 

They can do that?? 

David walks you through the news, with multiple interviews from Jerry Brito and Collins Belton, two experts in the matter. 

Let us know how you like the format!

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Topics Covered:

0:00 Intro
Opening Shot: https://twitter.com/RyanSAdams/status/1556743328774995971?s=20&t=OzfqFxxolrjhwZICo4KV6w 
Ripple Effects: https://twitter.com/collins_belton/thread/1556650759994970113 
Neutral Tool: https://twitter.com/jerrybrito/status/1556667240711438337?s=20&t=avKH9mQ1_3KDno2P2THs7Q 

4:00 What is OFAC?
Overview: https://home.treasury.gov/policy-issues/office-of-foreign-assets-control-sanctions-programs-and-information 
Press Release: https://home.treasury.gov/news/press-releases/jy0916 
Sec Blinken: https://twitter.com/SecBlinken/status/1556677862345801728?s=20&t=QwqpNxU9CYKPz8LhBATSFQ 

7:44 What is Tornado Cash?
Breakdown: https://blog.chainalysis.com/wp-content/uploads/2022/08/tornado-pie-1536x1034.png 
Treasury Misleading: https://twitter.com/USTreasury/status/1556655337431785472?s=20&t=Jw5y0Xr4fHSelCzfhWvYlQ 
Alex Svanevik: https://twitter.com/ASvanevik/status/1556983834809614337?s=20&t=OCDr5P9jRweG9RVYdmmxKQ 

10:20 Using Tornado Cash
Neeraj Meme: https://twitter.com/NeerajKA/status/1556707552251060225?s=20&t=UNffL4gM4hBsaXDEZ0gJ_w 
Clean ETH2 Addresses:  https://twitter.com/econoar/status/1556775153153048582?s=20&t=63-Nwh2Lv7u8tTC4E-CVUw 
More Use Cases: https://twitter.com/RezaJafery/status/1556751888896258049?s=20&t=9rJ2buSh4PCTPMlNKezAyw 

12:15 Banning Smart Contracts
Coin Center Announcement: https://www.coincenter.org/u-s-treasury-sanction-of-privacy-tools-places-sweeping-restrictions-on-all-americans/ 

17:08 Ripple Effects
Circle: https://www.theblock.co/post/162172/circle-freezes-usdc-funds-in-tornado-cashs-us-treasury-sanctioned-wallets 
Github: https://twitter.com/bantg/status/1556721709931175937?s=20&t=LSCI_12-Giipv727Y52qUg 
Infura & Alchemy: https://twitter.com/0xdev0/status/1556933551073153024 

20:55 A Ban on Who?
Cobie & Gainzy: https://twitter.com/cobie/status/1556647650212155394?s=20&t=F8nhR0zX4PkbGGOl1JmBCQ 
Depositing .1 ETH: https://twitter.com/josephdelong/status/1557011056572129280?s=20&t=F1JszlO7Zm0lm4EGsgBrNg 

23:14 A Chilling Effect
Attacking Free Speech: https://twitter.com/matthew_d_green/status/1556764387796340736?s=20&t=w8K19sEWj_AVS372HOjHTw 

25:47 Decentralization
Priorities: https://twitter.com/econoar/status/1556825245381578753?s=20&t=63-Nwh2Lv7u8tTC4E-CVUw 

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Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here:
https://newsletter.banklesshq.com/p/bankless-disclosures