Cryptocurrency “mixers” or “mixers” are a type of tool that provides privacy by making it difficult to track users’ transactions. However, this secrecy is controversial as it is seen by some authorities as a tool for money laundering and other illegal activities. This led to a legal battle by Ethereum-based crypto mixer Tornado Cash against sanctions imposed by the US Treasury Department. In this battle, Tornado Cash has found an unlikely supporter: Paul Grewal, head of legal at cryptocurrency exchange Coinbase. Grewal defended the privacy rights of the altcoin Tornado Cash and its users, expressing concerns about the legitimacy of the Treasury Department’s sanctions and potential rights violations.
Coinbase official made a statement about altcoin TORN
The legal battle surrounding Tornado Cash, a cryptocurrency mixer accused of facilitating money laundering, has taken a new turn. Coinbase’s legal chief, Paul Grewal, has emerged as a vocal advocate for the privacy-focused service, raising concerns about the U.S. Treasury’s approach and potential infringement on Americans’ privacy rights. Grewal used social media platform X to highlight his company’s support for the legal fight against the Treasury’s sanctions.
He noted a strong response filed by plaintiffs in the Fifth Circuit Court of Appeals that directly challenged Treasury’s claims. A major point of contention revolves around the Treasury’s rationale for sanctioning Tornado Cash. According to Grewal, the first argument was based on proving that all Tornado Cash users and developers had a “common purpose.” But he says there has been a “surprising turnaround” with the Treasury seemingly abandoning this approach in the appeals court.
US argument unconvincing
Grewal argues that this change reveals flaws in the original justification. He argues that the Treasury’s new argument is no more convincing than the first. Beyond the specific arguments, Grewal raises a broader concern: the potential for Treasury enforcement to go overboard, especially when applied to open-source software like Tornado Cash’s code. He emphasizes that open source code does not qualify as “property” under current law, which limits the Treasury’s authority to regulate it.
Grewal argues that any attempt to control American citizens’ use of such software requires congressional action. He emphasizes that the Treasury’s recent lobbying efforts to address this “regulatory gap” are evidence of its own limitations. Meanwhile cryptokoin.com As we reported at Tornado Cash co-founder Roman Storm continues to deny all allegations.
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