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On-chain tool to seize crypto is a purist’s nightmare, but a must: CEO

On-chain tool to seize crypto is a purist's nightmare, but a must: CEO

The founder of layer-1 blockchain Jurat has defended his protocol against potential haters, arguing that on-chain legal enforcement is a necessary trade-off for crypto mass adoption. 

On Aug. 8, a U.S. District Court used Jurat’s on-chain enforcement tool to lock several sanctioned individuals out of their crypto accounts. These individuals were sanctioned for money laundering and using ransomware to extort cryptocurrency payments to benefit North Korea’s weapons program.

Speaking to Cointelegraph, Mike Kanovitz, the founder and CEO of Jurat said the judicial order was the first of its kind.

The Jurat blockchain was launched in late 2022, formed via a fork of the Bitcoin blockchain. The technology connects blockchain nodes with court dockets to enforce court orders.

Kanovitz admits that such technology will likely garner criticism from die-hard supporters of decentralization.

“Some people are going to claim to be philosophical purists and hate on it. I get that.

However, the Illinois-based lawyer said such technology could bring the necessary due process protections for digital assets, which will be key to mainstream adoption.

“Some of the people who currently think that there should not be effective law enforcement on-chain would feel differently if they got hacked, defrauded, or lost their private keys. Then they would be relieved that they can recover their property,” he expla

In the first half of 2023, $656 million in cryptocurrencies were lost to scams, hacks and rug pulls, according to a June 30 report by blockchain security firm Beosin.

“It will not only tame the lawlessness that scares away would be adopters and draws the ire of government officials, it can unlock incredible utility for commerce,” he added.

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