Tuesday, September 26, 2023

Crypto Lobbyists Still Fighting to Remove “Illegal” Tornado Cash Penalties

The Blockchain Association and DeFi education fund have become the latest industry advocates to come forward in support of Coin Center’s lawsuit against the US Treasury over “illegal” sanctions against Tornado Cash.,

On June 2, two cryptocurrency industry advocacy groups filed a joint amicus brief in support of CoinCenter.Arguing that US sanctions against cryptocurrency mixers should be withdrawn.

He described the sanctions imposed by the Treasury’s Office of Foreign Assets Control (OFAC) as “both unprecedented and illegal”.and added:

“OFAC sanctions are illegal. OFAC does not have legal authority to approve software such as Tornado Cash, and yet its decision lacks any factual basis that would make the sanctions legal.”

The unions argued that Tornado Cash is software, and while OFAC has the legal authority to sanction people or property, it cannot sanction decentralized protocols.,

“The core of the Tornado Cache software is not and cannot be owned by anyone,” he argued.Claiming that OFAC “magiced” a “person” it therefore had grounds to approve the crypto mixer.

The brief acknowledged that there was a malicious use of the protocol for money laundering, mostly by hackers linked to North Korea, but also pointed to other, less nefarious uses.Specifically to improve privacy on the publicly accessible Ethereum blockchain.

The groups argued that The sanctions should be declared illegal and the courts should legally block their application,

In April, both the groups also filed an amicus curiae in support of an almost identical claim. Brought by six people against the Treasury Department for sanctions against Tornado Cash.

The lawsuit, filed in September, is backed by crypto exchange Coinbase.Those who also want the mixer ban to end.

However, the Treasury alleges that these types of cryptocurrency mixers are a threat to national security.and that Tornado Cash repeatedly failed to put in place controls to prevent money laundering.

Disclaimer: The information and/or opinions expressed in this article do not represent the views or editorial line of Cointelegraph. The information presented here should not be construed as financial advice or investment recommendation. All investments and commercial dealings involve risk and it is the responsibility of each individual to conduct appropriate research before making any investment decision.

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