Blockchain Association Challenges OFAC's Sanctions on Crypto Mixer Tornado Cash
Summary:
The Blockchain Association has expressed strong support for six plaintiffs filing legal proceedings against the U.S. Treasury's Office of Foreign Assets Control (OFAC) over sanctions placed on cryptocurrency mixer Tornado Cash. The association asserts that OFAC's sanctions are not only legal, but exceed their authority, challenging U.S. constitutional standards. The Blockchain Association's Legal Representative, Marisa Coppel, stated that OFAC should focus on sanctioning individual malicious actors, not banning tools over which it has no jurisdiction. The association suggests OFAC should seek Congressional authorization to ban crypto mixers like Tornado Cash, asserting that such moves might endanger the existence of numerous other internet-based tools.
The Blockchain Association is voicing strong support for six individuals who are currently in legal proceedings against the United States Treasury Department's Office of Foreign Assets Control (OFAC) over sanctions placed on cryptocurrency mixer Tornado Cash. The crypto advocacy organization insisted in an amicus curiae brief, submitted to a U.S. appellate court on November 20, that OFAC's sanctions on the privacy protocol were not only extralegal, but also exceeded the designated limits of its power, and displayed a whimsical and baseless approach, breaching U.S. constitutional standards.
The Blockchain Association's recent brief is the second one filed in favor of a group of Tornado Cash users who are challenging a prior court's affirmation of OFAC's call to impose sanctions on the crypto mixing platform. The Blockchain Association's legal representative, Marisa Coppel, stressed in a November 20 declaration that OFAC should concentrate on sanctioning malicious actors instead of issuing blanket bans on tools over which it has no jurisdiction.
In the brief, the Blockchain Association suggested that OFAC should act within its prescribed legal parameters and seek Congressional authorization to ban crypto mixers like Tornado Cash. The organization also mentioned that such overreaching moves would create a ripple effect that could potentially endanger the existence of numerous other internet-based tools that have been accessible so far. The Blockchain Association has consistently asserted that Tornado Cash operates autonomously, without ownership or human interference.
OFAC originally imposed sanctions on Tornado Cash in August 2022, claiming that the platform had been used to launder over $7 billion in digital assets since 2019, a portion of which included the $455 million stolen funds attributed to North Korea-affiliated Lazarus Group. Cryptocurrency exchange Coinbase has also expressed its support for the lawsuit.
Published At
11/21/2023 12:41:37 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.