How can cryptography prove innocence?

Cryptography can be used to prove innocence by allowing individuals to validate their actions and legitimacy without compromising their privacy. A notable example is the "Proof of Innocence" protocol discussed by Ryan Sean Adams and David Hoffman on the Bankless. This protocol was built to enable users of a cryptocurrency mixing service called Tornado Cash to cryptographically prove that their addresses are not on an OFAC (Office of Foreign Assets Control) sanction list, thus demonstrating they are not engaging in illicit activities even while using a service associated with high anonymity 1.

This approach highlights how builders in the crypto community can use cryptographic methods to confront authoritarian measures and maintain privacy while proving compliance with regulations 2. Such technical innovations can be crucial in legal disputes, providing substantial evidence to legally challenge overreaching sanctions or bans imposed by authorities.