What is DarkFi Exactly and Why the Latest Crypto Privacy Protocol Keeps the FBI Awake at Nights

Crypto privacy tools have become popular in recent years. These tools allow people to move their crypto assets without detection, and one such tool is DarkFi. This tool is being created by an early Bitcoin developer alongside renowned coders.

New privacy tool DarkFi could be a gamechanger

The team working on the launch of DarkFi believes that the platform will be a greater threat to governments as it will be superior to any other similar software that has been created in the past. DarkFi will compete against popular tools such as Tornado Cash.

The DarkFi developers are planning to release a testnet for DarkFi, which will pave the way to the release of the final product. While the team believes in the potential of this project, law enforcement and cybersecurity experts are concerned about the misuse of such tools to promote illegal dealings such as money laundering and terrorism financing.

The name of this tool has been derived from decentralized finance (DeFi) and a speech given by the former director of the FBI, James Comey, about how law enforcement would face the “Going Dark” problem as they investigate digital activity.

The team working on this privacy tool is based across Europe and the Middle East. The developers promote this tool as a platform that can be used to protect users from violence imposed by the government. However, according to law enforcement authorities, the tool makes it more difficult to arrest human traffickers, drug dealers, and terrorists.

According to Politico, the infrastructure of DarkFi is similar to that of new crypto tools compliant with the regulatory and legal frameworks. DarkFi has integrated zero-knowledge proofs like most tools in the blockchain industry. Moreover, the experts that have reviewed the project’s announcement and website have argued that the project was sophisticated.

Bill Callahan, a former agent at the Drug Enforcement Administration, said that the possibility of having advanced encryption was a concern. He also added that to protect the public, encryption tools currently under development needed to strike a balance between personal freedom and government oversight.

Callahan also added that the people running such projects risked legal liability for criminal activity. “If they are allowing this to be used by nefarious actors, they run the risk of being held responsible,” Callahan said.

Tornado cash developer arrested

The launch of DarkFi comes after the developer of one of the most used crypto mixers Tornado Cash, Alexey Pertsev, was arrested. Pertsev was arrested last year, despite criticism from the crypto community demanding his release.

The judge accused Pertsev of promoting criminal activities through the Tornado Cash privacy tool. The Tornado Cash privacy tool has been used by hackers such as the North Korean Lazarus Group to launder stolen funds. However, the crypto community argues that Pertsev only created the code and was not responsible for what the tool was used for.


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