Crypto Industry Fights Sanctions on Tornado Cash

Crypto lobbyists still fighting to axe unlawful Tornado Cash sanctions

The cryptocurrency industry is protesting the US Treasury’s “unlawful” penalties placed on Tornado Cash. The Blockchain Association and the DeFi Education Fund have joined forces to file a supporting brief in Coin Centers’ lawsuit against the Treasury. The total area of contention is that the Office of Foreign Assets Control lacks the jurisdiction to penalize software such as Tornado Cash.

The advocacy groups contend that the Tornado Cash software’s core cannot be held by anyone, rendering it ineligible for a penalty. At the same time, acknowledges that some unscrupulous persons have exploited cash for money laundering related to North Korea.

The organizations stress that the procedure serves useful functions as well. It improves privacy on the Ethereum blockchain, which is accessible to all users.

The associations are adamant that the sanctions imposed by OFAC are outdated and illegal. They claim that OFAC’s decision lacks a factual basis that would allow the sanctions to be legal. This goes on to say that OFAC created a fictional “person” in order to justify the sanctions imposed on the crypto mixer.

The advocacy groups intend to dispute the legality of the sanctions through their united amicus brief. They seek a determination that the sanctions are unconstitutional, as well as a legal prohibition on the court’s enforcement of them.

This collaborative effort adds to the growing support for Coin Center’s case. Advocates for the cryptocurrency business are speaking out against what they see as an abuse of authority. 

As the case progresses, it will be interesting to observe how the courts interpret and answer the arguments.  Moreover, the conclusion could have far-reaching consequences for the regulation of decentralized technologies. 


These efforts aim to secure the industry’s future by seeking a fair and balanced regulatory structure. These ensure that lawful applications of decentralized finance technologies are not hampered. Let us hope that these initiatives will have a long-term impact on the community.


About Ron Fetahu

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