Legal Battle Supported by Coinbase against US Government’s Sanctions on Tornado.Cash

04/06/2023 10:13 • Blockchain Buzz • 118 views

According to reports, in the legal battle supported by Coinbase against the US government’s sanctions on Tornado. Cash, six plaintiffs filed a summary judgment motion on Wednesday, stating that Tornado. Cash cannot be sanctioned as property by design. The motion seeks to reopen Tornado. Cash to all American citizens and claims that the government’s move is unconstitutional.

Six plaintiffs filed a motion seeking to reopen Tornado to US citizens. Cash

In a recent legal battle, Coinbase has supported six plaintiffs who have filed for a summary judgment motion against the US government’s sanctions on Tornado.Cash. The motion claims that Tornado.Cash cannot be sanctioned as property by design and seeks to reopen it to all American citizens. According to reports, the plaintiffs also claim that the government’s move is unconstitutional.

Understanding Tornado.Cash

Tornado.Cash is a privacy-focused Ethereum mixer designed to improve the anonymity of transactions. It works by enhancing the privacy of Ethereum transactions via obfuscation techniques such as ring signatures and zero-knowledge proofs. This allows users to remain anonymous while transacting on the Ethereum network, thus providing greater financial freedom and privacy.

The US Government’s Sanctions on Tornado.Cash

In 2021, the US government announced its intention to sanction Tornado.Cash as part of its broader efforts to combat money laundering and terrorism financing. This move came as a significant blow to Tornado.Cash’s development team and its supporters, who saw it as an attack on the principles of financial freedom and privacy.

Coinbase’s Support for Tornado.Cash

Coinbase, one of the largest cryptocurrency exchanges in the world, has taken a stance against the government’s sanctions on Tornado.Cash. It has shown support for the six plaintiffs who have filed the summary judgment motion against the government’s actions. Coinbase has argued that Tornado.Cash is a legitimate service that does not violate any laws.

The Plaintiffs’ Claims

The plaintiffs’ summary judgment motion argues that Tornado.Cash cannot be sanctioned as property by design. They claim that the government’s move to sanction Tornado.Cash violates the due process clause of the Fifth Amendment and that it is unconstitutional. Their motion seeks to reopen Tornado.Cash to all American citizens.

Conclusion

In conclusion, the legal battle supported by Coinbase against the US government’s sanctions on Tornado.Cash is a significant development in the ongoing debate over financial privacy and freedom. The plaintiffs’ summary judgment motion seeks to challenge the government’s actions and argues that Tornado.Cash is a legitimate service that provides greater anonymity and privacy to users. It remains to be seen how this legal battle will unfold, but the outcome will likely have far-reaching implications for the future of cryptocurrency and financial privacy in the United States.

FAQs

1. Why did the US government sanction Tornado.Cash?
Ans: The US government sanctioned Tornado.Cash in 2021 as part of its broader efforts to combat money laundering and terrorism financing.
2. What is Coinbase’s stance on Tornado.Cash?
Ans: Coinbase has taken a stance against the government’s sanctions on Tornado.Cash and has shown support for the six plaintiffs who have filed the summary judgment motion against the government’s actions.
3. What does the plaintiffs’ summary judgment motion seek to achieve?
Ans: The plaintiffs’ summary judgment motion seeks to reopen Tornado.Cash to all American citizens and argues that the government’s move to sanction Tornado.Cash is unconstitutional.

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