This might have interesting repercussions. While we're staring at laundering while it happens on a transparent DEX, couple of consideratios arise for me: - will liquidity providers be tainted? - privacy is key, probably the next DEX should use confidential transactionshttps://twitter.com/lawmaster/status/1310129344245903362 …
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law student here; uncharted waters afaik. But in property law depending on jurisdiction, if you purchase land honestly not knowing it was fraudulently transferred it can’t be taken from you But the money the fraudster received can be taken from them. I think
@lawmaster is right.
Well. But since this issue now is public I'm wondering how this will change. Potentially you're knowingly providing liquidity to an hacker. The more time it passes the more difficult is to argue you were 100% unaware.
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But then everyone would be forced to sell any coin that ever got hacked. What if he cashed out to sUSD, and the AMM tx hop went ocean>ETH>based>sUSD ? Does everyone holding any liquidity on any of those coins now bear responsibility?
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This is a tough argument to make since the whole premise of a DEX is to remove centralized controls of the sorts you speak of.
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