Coin Center Sues Treasury Over Tornado Cash Ban



Key points to remember

  • Crypto advocacy group Coin Center has filed a lawsuit against the Treasury Department for its unilateral imposition of sanctions on Tornado Cash.
  • The implications of the case are considerable; as things stand, the Treasury could theoretically sanction any software it sees fit.
  • This arguably poses an existential threat to virtually every protocol in the industry.

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Coin Center filed a lawsuit against the US Treasury Department’s Office of Foreign Assets Control over its decision to sanction Tornado Cash.

Coin Center sues OFAC

The Treasury’s Office of Foreign Assets Control is facing a lawsuit over its ban on Tornado Cash.

Jerry Brito, Coin Center Executive Director announcement on Twitter today that the leading crypto lobbying group had filed a lawsuit challenging OFAC’s authority to sanction Tornado Cash smart contracts.

“Not only are we fighting for the right to privacy, but if this precedent is maintained, OFAC could add entire protocols like Bitcoin or Ethereum to the sanctions list in the future, banning them immediately without any procedure. public. This cannot go unchallenged,” Brito wrote.

Brito added that Coin Center would challenge OFAC in the Supreme Court if necessary.

In an article published on the Coin Center website, Brito and Coin Center Research Director Peter Van Valkenburgh explained the details of the lawsuit. They explained that the lawsuit makes four key claims. He argues that the Treasury went beyond its statutory authority in issuing the sanction and that the Treasury’s own regulations limit the ability to sanction the protocol. He also says the Treasury failed to consider the consequences of the sanction and has since broken its own rules, and that Americans should have the right to make private donations to causes.

Bankless co-host David Hoffman, former Tornado Cash user Patrick O’Sullivan, and anonymous 688th Support Brigade operator are co-plaintiffs in the case alongside Coin Center.

In the post, Coin Center thanked Consovoy McCarthy, whose legal team will represent the plaintiffs, as well as Abraham Sutherland.

The note ended with a powerful statement expressing confidence in the matter. “Privacy is normal, and when we win our case, using Tornado Cash will return to normal,” it read.

This story is breaking and will be updated as new details emerge.

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