{"id":83267,"date":"2023-08-18T13:16:41","date_gmt":"2023-08-18T10:16:41","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=83267"},"modified":"2025-09-12T10:08:55","modified_gmt":"2025-09-12T07:08:55","slug":"court-rejects-coinbase-bid-to-lift-sanctions-on-tornado-cash","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/court-rejects-coinbase-bid-to-lift-sanctions-on-tornado-cash\/","title":{"rendered":"Court rejects Coinbase bid to lift sanctions on Tornado Cash"},"content":{"rendered":"<p>The federal court <a href=\"https:\/\/assets.ctfassets.net\/c5bd0wqjc7v0\/49PgL5mFeQyM9wRH7prlQX\/195db7061792d0490214eac8751f6c0a\/-94-_Order_on_motions_for_summary_judgment.pdf\">\u043e\u0442\u043a\u043b\u043e\u043d\u0438\u043b \u0445\u043e\u0434\u0430\u0442\u0430\u0439\u0441\u0442\u0432\u043e<\/a> backed by Coinbase regarding the illegality of sanctions against the Tornado Cash cryptocurrency mixer. Paul Grewal, Coinbase&#8217;s chief legal officer, said this.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/Opera-Snimok_2023-08-18_125417_twitter.com_.webp\" alt=\"Opera-Snimok_2023-08-18_125417_twitter.com_\" class=\"wp-image-213892\"\/><figcaption class=\"wp-element-caption\">\u0414\u0430\u043d\u043d\u044b\u0435: <a href=\"https:\/\/twitter.com\/iampaulgrewal\/status\/1692260842585350334\">X<\/a>.<\/figcaption><\/figure>\n<p>The plaintiffs argued that the U.S. Treasury overstepped its authority, since the agency could not explain how the immutable open-source smart contracts in the case are &#8216;property&#8217; subject to sanctions.<\/p>\n<p>Accordingly, no one, including the creators, developers or holders of the native TORN tokens, has a &#8216;property interest&#8217; in these smart contracts.<\/p>\n<p>However, the court ruled that the <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-a-dao-decentralised-autonomous-organisation\">\u0414\u0410\u041e<\/a> that runs the mixer is a real legal entity, its structure hardly differs from that of a corporation. Moreover, it &#8216;reaps value&#8217; from the service&#8217;s smart contracts, making it a reporting entity.<\/p>\n<p>Commenting on the ruling, Paul Grewal said Coinbase will continue backing the suit and intends to appeal.<\/p>\n<p>In August 2022, <span data-descr=\"U.S. Department of the Treasury's Office of Foreign Assets Control\" class=\"old_tooltip\">OFAC<\/span> <a href=\"https:\/\/u1f987.com\/en\/news\/us-sanctions-tornado-cash-the-ethereum-mixer\">added Tornado Cash to the sanctions list<\/a>, a site through which, according to the agency, criminals laundered more than $7 billion in crypto. Of that amount, more than $455 million are linked to the North Korean hacker group Lazarus Group.<\/p>\n<p>Soon after, Coinbase <a href=\"https:\/\/u1f987.com\/en\/news\/coinbase-backs-lawsuit-against-u-s-treasury-over-tornado-cash-sanctions\">funded the lawsuit<\/a> against the Treasury, its head Janet Yellen and OFAC Director Andrea Gaki, seeking to overturn the sanctions against the mixer.<\/p>\n<p>In April 2023, the Bitcoin exchange also joined the appeal in the case.<\/p>\n<p>Earlier, during the court proceedings on the legality of blocking Tornado Cash, the U.S. Treasury <a href=\"https:\/\/u1f987.com\/en\/news\/tornado-cash-token-holders-likened-to-terrorists\">compared holders of TORN tokens<\/a> with terrorists from &#8216;Al-Qaeda&#8217; (designated as a terrorist organization and banned in several countries).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The court denied the investors&#8217; group&#8217;s motion, backed by Coinbase, challenging the illegality of sanctions against the Tornado Cash mixer.<\/p>\n","protected":false},"author":1,"featured_media":83268,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[138,1162,1314,26],"class_list":["post-83267","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-coinbase","tag-court-cases","tag-tornado-cash","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"14","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/83267","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=83267"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/83267\/revisions"}],"predecessor-version":[{"id":83269,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/83267\/revisions\/83269"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/83268"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=83267"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=83267"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=83267"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}