Coinbase-Backed Plaintiffs File Motion to Overturn Sanctions on Tornado Cash by US Treasury

Coinbase-Backed Plaintiffs File Motion to Overturn Sanctions on Tornado Cash by US Treasury

Six individuals backed by cryptocurrency exchange Coinbase have filed a motion for a partial summary judgment in a Texas District Court, challenging the US Treasury’s decision to sanction crypto mixer Tornado Cash. The motion seeks the US Office of Foreign Asset Control (OFAC) to settle for the first two counts from its original complaint filed in September 2022. The plaintiffs claim that OFAC exceeded its statutory powers under the International Emergency Economic Powers Act (IEEPA) and violated the free speech clause of the US Constitution’s First Amendment.

According to the plaintiffs, OFAC breached a section of the IEEPA that allows the Treasury to take action against the property in which a foreign country or foreign national has an interest. The plaintiffs argue that the provision does not apply to open-source software, as it only allows the pursuit of property-related action against a foreign “national” or “person”. They contend that the smart contracts that provide the functionality to Tornado Cash should not be considered property under IEEPA, as they cannot be owned.

The plaintiffs argue that banning the open-source code violates the free speech clause of the First Amendment to the US Constitution. They suggest that banning all uses of Tornado Cash is disproportionate, as money laundering only accounted for 0.05% of crypto transactions in 2021.

The motion aims to restore internet privacy rights for US citizens and is part of a broader effort.

 

TokenInsight is dedicated to covering the most important and cutting-edge trends in the world of crypto. If you have information to share with us, please feel free to contact our email news@tokeninsight.com. Your trust will be well respected.

Source

Policy and Regulation

In This Article

Related News
'He signs whatever I say': LIBRA token 'facilitator' Hayden Davis claims he paid Argentine Pres. Milei's sister for influence: report 'He signs whatever I say': LIBRA token 'facilitator' Hayden Davis claims he paid Argentine Pres. Milei's sister for influence: report
Argentinian President Javier Milei charged with fraud over $LIBRA token scandal: AP Argentinian President Javier Milei charged with fraud over $LIBRA token scandal: AP
Bitwise files Dogecoin ETF registration, firm confirms Bitwise files Dogecoin ETF registration, firm confirms
Trump-backed World Liberty Financial swaps approximately $90 million worth of stablecoins for ETH, LINK and other tokens Trump-backed World Liberty Financial swaps approximately $90 million worth of stablecoins for ETH, LINK and other tokens
World Liberty Financial sees surge in token sales following Donald and Melania Trump memecoin launches World Liberty Financial sees surge in token sales following Donald and Melania Trump memecoin launches
Latest News More More
1 Day Ago Citigroup predicts stablecoin supply could hit $3.7 trillion by 2030
1 Day Ago Ark Invest raises 2030 bull-case bitcoin price projection to $2.4 million on 'aggressive' modeling
2 Days Ago Zora airdrop triggers confusion as token launches without announcement, requires users claim manually
3 Days Ago pot bitcoin ETFs see $936 million inflows as 'safe haven' narrative strengthens
3 Days Ago Binance South Africa to require information on senders and recipients for local compliance
delate
Use TokenInsight App All Crypto Insights Are In Your Hands
Open