Coinbase Backs Lawsuit Against Treasury Department for Sanctioning Tornado Cash:
America’s largest cryptocurrency exchange – – Coinbase- is supporting a lawsuit against the U.S. Treasury Department following its sanctions against the privacy protocol – Tornado Cash.
About 6 individuals were among the lawsuit’s plaintiffs known to have personally used the mixer, some of which include Coinbase employees.
According to CNBC, Coinbase’s senior security risk analyst revealed that he used Tornado Cash to conceal his cryptocurrency donations to Ukraine, for fear of being targeted by Russian hacking groups.
Ethereum’s co- founder, Vitalik Buterin, also admitted last month that he used Tornado Cash to donate to Ukraine, but to protect the recipient’s identity rather than his own.
With the above scenarios, the lawsuit argues that the sanctions are hurting ordinary people who have used Tornado Cash for legitimate, non-criminal reasons.
“Each is an American who simply wants to engage in entirely lawful activity in private,” reads the lawsuit.
However, the Treasury Department argued that Tornado had been used by North Korean hackers to launder over $3 billion in crypto transactions over the past three years.
One of such example pertained to the $600 million Axie Infinity hack in March, from which Tornado cash constituted about 15% of the stolen funds.
Meanwhile, recent reports revealed that about 75% of laundered ETH is transferred by criminals to Tornado Cash in order to conceal their identity.