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Blockchain Association and DeFi Education Fund Challenge Sanctions Against Tornado Cash in US Court

The advocacy group, the Blockchain Association, and the DeFi Education Fund have jointly filed an expert opinion with the US District Court in Austin.

Challenging the sanctions imposed on the Tornado Cash cryptomixer by the US Treasury Department’s Office of Foreign Assets Control (OFAC).

According to the organizations, the sanctions against Tornado Cash are unlawful and violate the US Constitution.

In their memo to the court, the groups noted that the OFAC’s decision to block Tornado Cash software raises serious regulatory and constitutional issues and could set a dangerous precedent, expanding its powers.

The Blockchain Association and the DeFi Education Fund argued that Tornado Cash is merely software and not an individual or property, which is a neutral tool designed to help maintain user privacy.

Therefore, the lawyers urged the court to issue a partial judgment in favor of Tornado Cash under summary judgment.

The organizations emphasized that OFAC should impose sanctions on specific individuals who commit criminal acts, rather than blocking neutral tools used by intruders for illegal activities.

Kristin Smith, CEO of the Blockchain Association, commented that OFAC’s actions could limit the rights of Americans, and Tornado Cash’s blocking was illegal.

Coin Center, a non-profit organization, had also filed a lawsuit against the US Department of the Treasury for blacklisting Tornado Cash last year, making similar claims.