Crypto investors backed by Coinbase sue U.S. Department of Treasury after Tornado Cash sanctions

Crypto investors backed by Coinbase sue U.S. Department of Treasury after Tornado Cash sanctions

Coinbase says that the Treasury overstepped its authority in issuing the Tornado Cash sanctions.

According to a new lawsuit filed in the U.S. District Court, Western District of Texas. On Thursday, six users of the Ethereum blockchain and cryptocurrency mixer Tornado Cash sued the U.S. Department of Treasury, alleging that its recent designation of 44 Tornado Cash smart contract addresses to the Specially Designated Nationals (SDN) list of the Office of Foreign Asset Control (OFAC) is “not in accordance with law.”

Since Aug. 8, U.S. persons and entities have been prohibited from interacting with the sanctioned Tornado Cash smart contract addresses, blockchain or business-wise, under the threat of criminal or civil penalties for non-compliance. The plaintiffs seek to annul the designation based on three arguments. First, they argue Tornado Cash does not meet the definition of a property, a foreign country, or a national thereof, nor a person and therefore cannot be added to the SDN list.

Second, they claim a violation of their First Amendment (freedom of speech) rights under the U.S. Constitution:

Rate article
( No ratings yet )
×