Sat. Apr 20th, 2024

• Coinbase is backing a lawsuit that seeks to have sanctions imposed by the US government on cryptocurrency mixer Tornado Cash removed.
• The plaintiffs argue that the sanctions are illegal and should be set aside under the Administrative Procedure Act (APA).
• The case involves two statutes: the International Emergency Economic Powers Act (IEEPA) and the North Korea Sanctions and Policy Enhancement Act of 2016.

Coinbase Backs Lawsuit to Remove Sanctions Imposed on Crypto Mixer Tornado Cash

The Plaintiffs’ Argument

Coinbase is backing plaintiffs who want sanctions imposed by the United States government against crypto mixer Tornado Cash removed. The filing by Joseph Van Loon, Tyler Al-meida, Alexander Fisher, Preston Van Loon, Kevin Vitale, and Nate Welch is against the United States Office of Foreign Assets Control (OFAC); Janet Yellen, the Secretary of the Treasury; Andrea Gacki, the Director of OFAC. Plaintiffs argue that these sanctions on Tornado Cash are unlawful and should be set aside under the Administrative Procedure Act (APA).

Case Involves Two Statutes

The case involves two statutes: The International Emergency Economic Powers Act (IEEPA) and The North Korea Sanctions and Policy Enhancement Act of 2016. Plaintiffs claim that since Tornado Cash is just software with no owner or controlling authority, it cannot be sanctioned under these laws. They also argue that it violates their First Amendment rights as citizens of the United States to use this software.

Tornado Cash’s Response

In response to being placed on OFAC’s Specially Designated Nationals And Blocked Persons List (SDN), Tornado Cash took down its GitHub repository in protest. However, after several months granted a temporary restraining order temporarily allowing them to operate until a final decision was made about their fate.

Conclusion

Coinbase has come out in support of those challenging these sanctions imposed on Tornado Cash in an attempt to protect users’ privacy rights online when using cryptocurrency mixers like TC. Whether or not they will be successful remains to be seen as this case still has yet to make its way through court proceedings.

By admin