Group Backed by Coinbase Loses Lawsuit Against US Treasury's Tornado Cash Sanction

Group Backed by Coinbase Loses Lawsuit Against US Treasury's Tornado Cash Sanction

A six-people group lost a lawsuit that supports Tornado Cash. They believed the US Treasury Department overstepped its authority when sanctioning Tornado Cash last year and required the court to overturn the sanction. However, their motion was denied by Judge Robert Pitman.

A year ago, the Office of Foreign Asset Control (OFAC) under the US Treasury Department added Tornado Cash and all of its Ethereum addresses to the Specially Designated Nationals list (SDN List). Afterward, a group of six people, including two Coinbase employees, started a lawsuit against the US Treasury and was funded and supported by Coinbase.

The group argued that the US Treasury sanctioning an open-source software exceeded its authority and violated the free speech clause of the US Constitution's First Amendment. But Judge Pitman believed that Tornado Cash was an actual entity in itself, which had a property interest in its smart contracts.

After the group lost the lawsuit, Coinbase's chief legal officer Paul Grewal said on X that the exchange will continue to support them on appeal.

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

Source

Coinbase

Privacy

DeFi

Policy and Regulation

In This Article

Related News
0xbow unveils ‘Privacy Pools,’ a new blockchain privacy tool drawing from Vitalik Buterin’s research 0xbow unveils ‘Privacy Pools,’ a new blockchain privacy tool drawing from Vitalik Buterin’s research
'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
DarkFi, the privacy project started by crypto anarchist Amir Taaki, launches anonymous app in alpha DarkFi, the privacy project started by crypto anarchist Amir Taaki, launches anonymous app in alpha
Wildcat, the decentralized credit platform built by Crypto Twitter mainstay Laurence Day, launches new version on Ethereum Wildcat, the decentralized credit platform built by Crypto Twitter mainstay Laurence Day, launches new version on Ethereum
Latest News More More
5 Days Ago Ethereum edges closer to deploying Pectra on mainnet with successful upgrade on Hoodi testnet
5 Days Ago MEXC Extends DEX+ Platform to Binance Smart Chain Users
March 25 Binance suspends employee for allegedly profiting off of insider information
March 25 BlackRock launches bitcoin ETP in Europe following US success
March 21 Pump.fun launches DEX called PumpSwap to instantly migrate graduated token
delate
Use TokenInsight App All Crypto Insights Are In Your Hands
Open