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>to obscure cash flows, something which is specifically illegal.

It's only illegal under 18 U.S. Code ยง 1956 to conduct transactions to obscure the source of "the proceeds of some form of unlawful activity." There's no law against obscuring the sources of cash flows in general. And on an otherwise completely public blockchain, there was a major use case for obfuscating flows for the sake of user privacy.




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