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US Treasury Department Faces Legal Challenge Over Penalization of Ethereum Mixing Provider Tornado Cash

To stay informed on breaking news, you can join our Telegram channel. The US Treasury Department is facing legal action over its decision to penalize Ethereum mixing provider Tornado Cash, with a court filing outlining the key points of the case against the department. Coinbase Chief Legal Officer Paul Grewal has expressed support for the plaintiff's arguments, which focus on the government's attempt to ban the use of open-source software through property restriction statutes. The case challenges the Treasury's restrictions on Tornado Cash on four different grounds, including a violation of the First Amendment. The US government's actions against crypto companies have been criticized for allegedly stifling innovation in the country.

The legal dispute over Tornado Cash centers on the claim that the government's approval of the software interferes with free expression, violating the First Amendment. The plaintiffs argue that they used the software to protect their privacy while engaging in significant charity and other forms of speech. Coinbase's chief legal officer is concerned about the government's response, which essentially advises individuals to "speak elsewhere." However, the government's argument is weaker than the First Amendment, as law-abiding citizens cannot be directed to exercise their rights in a place with fewer personal safeguards. Meanwhile, a Dutch court has approved a request for Alexey Pertsev, the inventor of Tornado Cash, to be questioned by blockchain analytics firm Chainalysis in connection with his ongoing money laundering prosecution.


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