Coinbase Supports Lawsuit Against U.S Treasury in Tornado Cash Sanction

Coinbase Supports Lawsuit Against U.S Treasury in Tornado Cash Sanction
  • Tornado Cash sued the U.S Treasury department.
  • Coinbase backing a lawsuit against the SEC.

The largest cryptocurrency exchange Coinbase announced that it was backing a lawsuit against the U.S. Securities and Exchange Commission (SEC) on Thursday. Coinbase claims that this backing will help to prevent sanctions prohibiting Americans from Tornado Cash, a cryptocurrency mixer that is suspected of assisting hackers in money laundering for cybercrime.

Six users of Ethereum blockchain and cryptocurrency mixer Tornado Cash sued the Treasury Department for violating their constitutional rights to free speech and exceeding its power by shutting down the cryptocurrency exchange.

Tornado filed a lawsuit after the Treasury Department imposed sanctions on the cryptocurrency mixer last month. The sanction claims that, Tornado Cash had allegedly laundered virtual currency worth more than $7 billion.

Since August 8, Under the legal action taken by the U.S. Treasury Department, the cryptocurrency mixer Tornado Cash has prohibited for U.S. people and organizations to engage with the authorized Tornado Cash smart contract addresses on the blockchain.

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A journalism graduate who is passionate about writing loves to dance and travel currently starts exploring blockchain technology.