Coinbase to Finance User’s Lawsuit Against Treasury Department for Tornado Cash Sanctions

Coinbase is supporting a lawsuit against sanctioning an Ethereum-based crypto mixer, Tornado Cash.

The exchange is financing the lawsuit against the U.S. Treasury Department that currently features six plaintiffs, including several Coinbase employees because they believe it’s the right thing to do.

Coinbase Chief Legal Officer Paul Grewal explained to CNBC that sanctioning a platform built on a code is a controversial issue, and it goes way beyond just Tornado Cash.

“We saw this as a much larger problem. It sets a dangerous precedent — if this code can be designated without any limits imposed by law, any technology, any tool or system could be fair game.”

Treasury department blacklisting Tornado Cash Mixer

The Treasury Department blacklisted a crypto service Tornado Cash and blocked American users from using it on Aug. 8. Citing involvement with money laundering activities and matters of national security, the department added the platform to the Specially Designated Nationals list, which contains blacklisted individuals, entities and crypto addresses, automatically banning every American citizen from interacting with Tornado Cash and any Ethereum wallet connected to the service. 

A representative of the department claimed that the mixer had laundered over $7 billion worth of cryptocurrency.

“Tornado Cash has been the go-to mixer for cybercriminals looking to launder the proceeds of crime, as well as helping to enable hackers, including those currently under U.S. sanctions, to launder the proceeds of their cybercrimes by covering up the origin and transfer of this illicit virtual currency.”

Tech needs legal protection, too

But it’s unfair to punish any platform when it’s used for illegal reasons when it helps other users with absolutely legal requests, Coinbase insists.

“Each [of the plaintiffs] is an American who simply wants to engage in entirely lawful activity in private,” the lawsuit states.

One of the plaintiffs, a senior security risk analyst at the crypto exchange, said they used the service to donate to Ukraine, which is fighting against the Russian invasion, and wanted to do it anonymously out of fear of being targeted by hackers tied to Russia. 

Vitalik Buterin, a co-founder of Ethereum and a prominent figure in the crypto space, shared that he used Tornado Cash to donate to the Ukrainian cause as well. 

“I’ll out myself as someone who has used TC [Tornado Cash] to donate to [Ukraine],” Buterin wrote.

“It’s important that the law’s distinction between people and code be respected. If that disrespect is allowed to stand, there could be all sorts of other ways in which statutes are twisted and bent to apply to crypto in ways that they shouldn’t be,” added Grewal.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here.

The post Coinbase to Finance User’s Lawsuit Against Treasury Department for Tornado Cash Sanctions appeared first on BeInCrypto.

Related Posts

‘Trading Like a Lehman Moment’ — Credit Suisse, Deutsche Bank Suffer From Distressed Valuations as the Banks’ Credit Default Insurance Nears 2008 Levels

It’s been more than a decade since the financial crisis in 2007-2008 when Lehman Brothers, the fourth largest investment bank in the U.S., collapsed and filed bankruptcy….

These Crypto Executives Have Stepped Down Since the Market Crash in May

Change is in the air as the crypto space continues to see top executives step down from their roles amid the market crisis that stemmed from the…

Bitcoin Price Analysis: Sideways Action Continues, Breakout Could Lead Huge Move

Bitcoin has yet to make a decisive move in any direction as the primary cryptocurrency continues to wrestle with the $18K support level. A bearish breakout below…

Aequinox Token Sale Session Now Available on P2PB2B Exchange

On the P2PB2B exchange, the Aequinox token sale session has already begun. Until October 8, you can purchase the tokens and sign up for the project’s community….

How to Purchase NFTs on Coinbase NFT Marketplace

Unlike cryptocurrencies, NFTs can’t be purchased on any open crypto market; you can either create one yourself by minting it on a blockchain or purchase it on…

OpenSea Recorded $144.5M in Revenue in Q3, With Creators Benefitting 76% of Funds

OpenSea earned $144.5 million in fees from users, with most of the money going to creators, according to Token Terminal. In a tweet, Token Terminal disclosed that…

Generated by Feedzy