with @michelekorver @jai_ramaswamy @smc90

We tease apart the facts vs buzz around recent news -- that the U.S. Treasury sanctioned Tornado Cash for allegedly laundering proceeds of cybercrimes, and then later the Dutch Fiscal Information and Investigation Service stated that they arrested a suspected developer of Tornado Cash Tornado Cash -- including what's novel and what's not here, as well as the broader regulatory and compliance backdrop.

But we also share an evergreen explainer that goes well beyond recent events, to help crypto founders and others navigate various regulatory and compliance requirements for builders... while still ensuring innovation.

• The first third covers a ton of analysis beyond the news around Tornado Cash -- from broader backdrop to specifics to players to what's novel or not in recent actions; as well as going into the differences between sanctions and national securities laws, to civil enforcement actions, criminal liability and money laundering, and Bank Secrecy Act (BSA) and anti-money laundering (AML) program compliance requirements. • We then do a brief interlude on the difference between obfuscating vs privacy preserving technologies, and why that matters in the big picture. • And then the SECOND half of the episode dives deep into understanding and navigating compliance and legal for builders, covering: different frameworks, principles, common myths & misconceptions; when and how to resource (tooling to hiring); a lightning-round primer on the alphabet soup of governmentt entities relevant to this space; advice for BOTH entrepreneurs & government agencies on engaging with each other • and much, much more… that’s all in the second half of the episode.

Our expert guests (in conversation with Sonal Chokshi) are:

• Michele Korver, head of regulatory at a16z crypto, former federal prosecutor who was also at the Department of the Treasury’s Financial Crimes Enforcement Network as their chief digital currency advisor; she also spent time in the U.S. Departmentt of Justice, where she was the first dedicated subject matter expert in cryptocurrency-related prosecutions and forfeitures; and • Jai Ramaswamy, chief legal officer at Andreessen Horowitz, where he oversees legal and compliance; he was also formerly chief risk and compliance officer at cLabs, which launched the decentralized protocol Celo; Jai also headed (or advised) on AML compliance & risk management at major banks (Capital One, Bank of America); and previously spent over a decade in government including significant time in the U.S. Department of Justice criminal division, where he focused on cybercrime, asset forfeiture, and money laundering.

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As a reminder: None of the following is legal, business, investment, or tax advice; please see a16z.com/disclosures for more important information, including a link to a list of our investments.