Blockchain Association supports lawsuit to lift Tornado Cash sanctions

Blockchain Association supports lawsuit to lift Tornado Cash sanctions

CryptoWizard
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The Blockchain Association has expressed support for six plaintiffs who are suing the United States Treasury Office of Foreign Assets Control (OFAC) over its sanctions on the crypto mixer Tornado Cash. In a Nov. 20 amicus curiae brief to a U.S. appellate court, the crypto advocacy group argued that OFAC’s decision to sanction the privacy protocol was unlawful, exceeded its statutory authority, and was “arbitrary and capricious,” which goes against the U.S. Constitution. This marks the second amicus brief filed by the Blockchain Association in support of Tornado Cash users appealing a lower court’s ruling that upheld OFAC’s decision to include the cryptocurrency mixer in its list of sanctioned entities.

In a Nov. 20 statement, Blockchain Association senior counsel Marisa Coppel emphasized that OFAC should focus on sanctioning bad actors instead of outright banning tools that it has no authority over. Coppel said, “OFAC must see Tornado Cash for what it is: a tool that can be used by anyone. Rather than sanctioning a tool with a lawful purpose, OFAC should remain focused on the bad actors that misuse such tools.” The Blockchain Association suggested in its brief that OFAC should seek approval from Congress to ban crypto mixers like Tornado Cash, acting within the bounds of the law.

“OFAC’s action sets a dangerous new precedent that drastically exceeds their authority and jeopardizes law-abiding Americans’ right to privacy.”

The Blockchain Association has long maintained that Tornado Cash has no owner or operator and can function autonomously without human intervention or assistance. OFAC first sanctioned Tornado Cash in August 2022, alleging that individuals and groups had used the mixer to launder over $7 billion in cryptocurrencies since 2019, including the $455 million stolen by the North Korea-affiliated Lazarus Group. Crypto exchange Coinbase has also backed the suit.