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Comment by jgilias | Hacker News Reader

But he’s not exactly _running_ the exchange, is he? I mean, it’d be interesting to see how the SEC asks him to shut it down, and of course that’s actually impossible for him (or anyone really) to do.

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If Tornado Cash was shut down (where everyone was pseudo-anonymous), SushiSwap can definitely be shut down. And TC wasn't exactly "shut down," it was just crippled by being blacklisted by USDC (Circle), essentially banned from all legitimate exchanges via sanctions, etc. Without liquidity, these financial toys are just dead code.

What's interesting is a steady stream of volume continues to flow through Tornado Cash, proving that it was indeed decentralized enough to withstand global sanctions. Although all funds exiting it are suspicious. One thing to remember is that the sanctions on TC currently only apply to US citizens and companies, although effectively given the US' dominant financial position globally, is indeed a massive red flag.

https://decrypt.co/123751/euler-finance-hacker-sends-1-6m-et...

Tornado Cash was sanctioned by OFAC, which makes it illegal for U.S. persons to interact with the relevant contract addresses to the same extent as interacting with North Korea.

SushiSwap is not going to be sanctioned. It's not clear what the U.S. could do to shut it down in the same manner, although of course, they could bring enforcement actions like this one and scare off any U.S. person from working on it.

The relevant bit is that the guy that is supposedly "running" this alledged unregulated security exchange can't shut it down himself. How is he running it if he's got no actual power over it?

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