Coin Center Sues US Treasury Over Tornado Cash Sanctions

The Washington, D.C.-based policy group Coin Center is suing the Treasury Department over its approval of Tornado Cash, open-source software that may be used to anonymize Ethereum blockchain transactions.

Treasury’s August authorization of the transaction mixer, allegedly exceeded their legislative power because Tornado Cash entails utilizing to accomplish activities that do not ‘any property in which any foreign country or a nation has any interest,’ the co-plaintiffs contend in their briefs.

An anonymous human rights campaigner living in the Southeastern United States, a software engineer who used the Ethereum blockchain, and David Hoffman, a digital asset manager, have joined Coin Center in the lawsuit.

“Americans use Tornado Cash unilaterally to protect their own property. Defendants’ defiance of this statute element assumes an authority that would give them virtually unlimited control to regulate the American economy,” the suit pointed out.

The plaintiffs also claim that the mixer is required to protect their privacy. The lawsuit was filed in the United States District Court for the Northern District of Florida.

This is the second lawsuit filed against the Treasury Department in relation to the sanctions. Coinbase, the largest cryptocurrency exchange in the United States, is supporting a lawsuit filed last month by six people who utilized the program, including two Coinbase employees.

Legal challenges to the Treasury’s approval of the software might be watershed moments for blockchains. The NGO and Coin base-backed cases aim to persuade the court that the government exceeded its powers by targeting software rather than individuals or entities, as well as exceeding the legislative wording and intent granting Treasury the ability to impose economic penalties.

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