Crypto: Coinbase finances the Tornado Cash VS OFAC lawsuit

The lawsuit between Tornado Cash and the US Treasury is arguably one of the toughest cases in cryptocurrency history. It also arouses the interest of the biggest figures in the crypto universe. This is particularly the case with Coinbase. He announced funding on Thursday for a lawsuit against the US Treasury.

Coinbase provides more explanation on its tweet

Tornado Cash VS US Treasury trial: A brief reminder of the facts

On August 8, 2022, the u.s. treasury (OFAC) has banned access to Tornado Cash. This is a cryptocurrency mixer or mixer open-source which runs on Ethereum. This sanction follows allegations that Tornado Cash helped hackers (backed by the North Korean government) to launder nearly $7 billion in virtual currencies.

On Thursday, September 8, 2022, six people decide to file a lawsuit in federal court for the Western District of Texas. The goal: block the sanctions imposed by the US Treasury Department and force it to remove Tornado Cash from the blacklist. In his statement yesterday, Brian Armstrong (CEO and co-founder of Coinbase) clarified that he would fund this lawsuit.

Coinbase is funding a lawsuit against the US Treasury

In the official blog of Coinbase, Brian Armstrong explains the reasons for his support. According to him, many users will see their funds trapped as a result of the sanctions imposed by the US Treasury. Worse still, they will no longer have access to an essential privacy tool. Knowing that Tornado Cash does not only allow to mix cryptos. This tool also optimizes the confidentiality of transactions.

Also according to Armstrong, the US Treasury also overstepped its authority. “We have no problem with the Treasury sanctioning bad actors. We take a firm stance against illegal behavior. But in this case, the Treasury went much further. He took the unprecedented step of sanctioning an entire technology instead of specific individuals. “, did he declare.

In all legal actions undertaken with Tornado Cash, Coinbase obviously intends to comply with the regulations in force. Like all Tornado Cash users, this cryptocurrency exchange hopes that the sanctions will be lifted.

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