Coinbase-Backed Lawsuit Says U.S. Treasury Violated Law with Tornado Cash Sanction
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Coinbase-Backed Lawsuit Says U.S. Treasury Violated Law with Tornado Cash Sanction

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6 months ago

A group of six crypto investors, with the support of Coinbase, have filed a lawsuit against the U.S. Department of Treasury for imposing sanctions on Tornado Cash.

Coinbase-Backed Lawsuit Says U.S. Treasury Violated Law with Tornado Cash Sanction

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Coinbase-Backed Lawsuit Says U.S. Treasury Violated Law with Tornado Cash Sanction

A group of six crypto investors, with the support of Coinbase, have filed a lawsuit against the U.S. Department of Treasury for imposing sanctions on Tornado Cash, a decentralized protocol that allows users to anonymize their Ethereum transactions. The lawsuit claims that the Treasury has violated the law and the Constitution by banning U.S. persons and entities from interacting with the Tornado Cash smart contracts.

The lawsuit makes four main arguments: first, that the Treasury has no authority to sanction software code that is not owned or controlled by any person or entity; second, that the Treasury has failed to provide any evidence that Tornado Cash poses a threat to U.S. national security or foreign policy; third, that the Treasury has violated the due process rights of the plaintiffs by depriving them of their property without notice or opportunity to be heard; and fourth, that the Treasury has infringed on the free speech rights of the plaintiffs by restricting their ability to use and support Tornado Cash.

The plaintiffs seek a court order that would invalidate the sanctions and allow them to use Tornado Cash without fear of legal consequences. They also seek a declaration that Tornado Cash is not subject to sanctions under U.S. law. Coinbase's chief legal officer, Paul Grewal, said that the lawsuit is an important step to protect the innovation and freedom of expression in the crypto space.

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