Coinbase upheld lawsuit against Tornado Cash cryptomixer ban
A group of plaintiffs in a case to lift sanctions imposed by U.S. authorities on cryptomixer Tornado Cash has filed a motion for summary judgment
Cryptocurrency exchange Coinbase has upheld a lawsuit against the Tornado Cash cryptomixer ban. On April 5, a group of individuals filed a motion for summary judgment in the case against the U.S. Treasury Department to lift sanctions on the cryptocurrency protocol.
On August 8, the U.S. Treasury Department imposed sanctions against Tornado Cash. The agency’s OFAC division put the cryptocurrency protocol and related digital wallet addresses on the sanctions list (SDN). According to U.S. authorities, more than $7 billion in illicit cryptocurrency proceeds have been laundered through this mixing service since its inception in 2019.
In September, 6 people, including Coinbase exchange representatives Tyler Almeida and Nate Welch, appealed OFAC decision. In their view, the agency exceeded its authority. And its actions violate the first amendment of the U.S. Constitution on freedom of speech. The defendants in the suit are the U.S. Treasury Department, its head Janet Yellen, OFAC and its head Andrea Gaki.
Coinbase General Counsel Paul Grewal wrote that the plaintiffs filed a motion for summary judgment in part. In which they asked the court to “open Tornado Cash to all.” If the motion is granted, the judge will rule on some of the factual issues, leaving others for trial.
Grewal noted that the citizens who appealed “are among the thousands of law-abiding Americans Who want to protect their privacy but cannot do so because of government sanctions.”
A Coinbase lawyer recalled the plaintiffs’ arguments. They argue that the government cannot sanction Tornado Cash. That’s because it’s not a forehttps://crypto-upvotes.com/coinbase-upheld-…-cryptomixer-ban/ign national or legal entity, it’s software. He also noted that the government can only legally sanction property, which the Tornado Cash code is not.
Our experts note that the rate of the token Tronado Cash (TORN) rose 14% after the news of the petition. The cryptocurrency’s value rose from $6.95 to $7.95
