First off, it's not just privacy but also issues with custody on lightning. Most people aren't willing to spend the time or money (or can't afford) to self-custody lightning. We documented the issues with custodial bitcoin in an earlier post with Hayek. And how it mirrors problems with the fractional reserve banking system.
Second, regarding this situation, they were able to rule out Monero outputs by running malicious nodes, but those outputs had no meaning if it stayed within Monero itself. As soon as someone swapped it for Bitcoin at a business that can be given a supenea, then it is a lead, and in this case, got a vendor doing XMR->Bitcoin in colombia.
If they are running that many monero nodes, they are running that many lightning nodes, and custody is a huge issue then
SimplifiedPrivacy.com Podcast / SimplifiedPrivacy.com
npub14s…jt5d6
2024-09-08 11:57:50
in reply to nevent1q…j8h9
Author Public Key
npub14slk4lshtylkrqg9z0dvng09gn58h88frvnax7uga3v0h25szj4qzjt5d6Published at
2024-09-08 11:57:50Event JSON
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"content": "First off, it's not just privacy but also issues with custody on lightning. Most people aren't willing to spend the time or money (or can't afford) to self-custody lightning. We documented the issues with custodial bitcoin in an earlier post with Hayek. And how it mirrors problems with the fractional reserve banking system.\n\nSecond, regarding this situation, they were able to rule out Monero outputs by running malicious nodes, but those outputs had no meaning if it stayed within Monero itself. As soon as someone swapped it for Bitcoin at a business that can be given a supenea, then it is a lead, and in this case, got a vendor doing XMR-\u003eBitcoin in colombia.\n\nIf they are running that many monero nodes, they are running that many lightning nodes, and custody is a huge issue then",
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