Weekly Rebuild: War of Attrition

Remember that movie where Sandra Bullock walks across the country blindfolded? Because reaching an external peak basically means you’re facing certain death.

I think that’s exactly what building something with Bitcoin feels like right now.

Everyone is moving blindly. The US government is taking everyone with them and no one knows where we are headed. There are no instructions to read and no rules to follow. It could be the slightest move in the wrong direction, make an unfortunate shitpost, or tweet on Elizabeth Warren’s bad day. Your head will be cut off.

Imagine you are one of the Samourai Wallet developers. One day, you decide enough is enough and take off the blindfold. you make a joint effort cooperate with regulators Get 24 colleagues involved. We pay top dollar and hire the best lawyers in the industry to help everyone see through the regulatory fog.

I cut it off after 4 months.

Beyond the human tragedy unfolding here, this will be a cathartic moment for the industry.

We have spent the last 10 years trying to win the favor of regulators. We asked permission, rolled out a red carpet, and practically begged for consideration. Millions of dollars were donated to lobbyists, and even more were donated by corporations seeking to do business with American citizens.

If last week was any indication, it was all in vain.

Did you think that only shitcoins make you strong?

Of course, samurai people seem to be easy to pick on. The inflammatory nature and radical remarks are enough to convince the casual observer that he or she is guilty, even if they are mistaken. Publicly challenging the government and inciting individuals to take control of their financial privacy is today considered a criminal offence.

Even in Bitcoin circles, “moderates” are, well… They claimed that they deserved it because they were shameless scoundrels. As far as they are concerned, there is no need to overreact.

“There’s nothing to see here.”

Back in the real world, when you start reading the indictment, your head starts spinning. The language is sloppy. The technical concept is a mess. Even the most sensational charges are incredibly weak. One loose Twitter DM, some vague presentation slides, and just plain shit. Considering the defendant’s history, I’m actually surprised they couldn’t convict him more. Maybe they have a couple of aces up their sleeves, but at first glance, none of them add up.

That is until you zoom out and see the whole picture. What if the reality distortion field is intentional? What if Keonne Rodriguez and William Hill were people with something much bigger than them?

We don’t have to guess. No conspiracy needed here. The day after Team Samurai was arrested, the U.S. Attorney for the Southern District of New York revealed all this publicly. In the case against Tornado Cash developer Roman Storm, U.S. attorneys filed a response to the defense’s appeal of dismissal. And boy, is that really weird?. We claim that not only have we been operating blindly, but that everyone has continued to break the law. Ten years of FinCEN guidance? It’s irrelevant.

Under the terms set out in this document, all Bitcoin transactions will probably have to go through KYC. P2P software is illegal and self-storage should be banned.

criminal intent

Don’t fall for the cheap tricks of celebrity examples and punk rock developers. The U.S. government is not trying to prosecute criminals, it’s trying to reset the rules of the game and redefine the laws so that everyone without a license to operate is considered a criminal.

It’s not just Samourai Wallet or Tornado Cash that are on trial. It’s your financial freedom too.

Of course, people who make a living kissing politicians’ feet and have plenty of regulatory moats will try to convince you otherwise. They’ll say you’re not lobbying hard enough. They probably sincerely believe that if the worst happens, we will vote for one of them.

Some are already heeding the warning signs. On Friday, ACINQ, creator of the Phoenix Lightning wallet, announced it was pulling its product from US app stores.

Recent announcements from U.S. authorities have raised doubts about whether self-custodial wallet providers, Lightning service providers, and even Lightning nodes can be considered financial services businesses and subject to regulation.

– ACINQ (@acinq_co) April 26, 2024

Others are accusing the government of bluffing. take a stand. Refusing to serve U.S. customers may help reduce debt in the short term, but it also feels like kicking the can down the road. There is a risk that any precedent that may be established in this case will be used as a basis for similar policies in other countries. Give it an inch and it will take a mile.

The fight is upon us and we must respond in kind. The rule of law is being challenged. The courts are being weaponized. For Americans, this is a fight for our constitutional rights. For the rest of the world, this is a cautionary tale.

For Bitcoin users, this is an opportunity to ditch the divisive rhetoric and take the fight to the real enemy: the state.

Dove: You live in a place where counterattacks have worked. The rest of us live in the rest of our broken world.
mircea_popescu : That’s a good point, isn’t it.
mircea_popescu : But I intend to continue the legacy.