Coin Center sues US Treasury over Tornado Cash sanctions

Crypto advocacy group Coin Center has filed a lawsuit against the U.S. Treasury Department for overstepping its legal authority by sanctioning Tornado Cash, which allegedly impedes the privacy rights of Americans.

According to the Oct. 12 filing, many Americans who are concerned about their privacy opt to use Tornado Cash to conceal their transaction details while transacting on Ethereum.

However, the Treasury’s move to sanction the privacy protocol has limited their ability to carry out certain transactions.

Crypto investor David Hoffman, software developer Patrick O’Sullivan, and human right advocate John Doe were named as Americans whose activities have been negatively affected by the sanction.

Coin Center said the sanction has also limited the funding its receives from donors.

“As a result of the Biden administration’s criminalization of Tornado Cash, these donors are less likely to contribute to Coin Center. They are effectively banned from engaging in expressive advocacy.”

Prior to the sanction, several donors supporting Coin Center’s advocacy effort relied on Tornado Cash to preserve their identity while supporting the public policy group.

Leading crypto exchange Coinbase had earlier joined forces with many crypto developers and investors to sue the Treasury for violating their right to privacy.