Coinbase News: Paul Grewal Criticizes U.S. Treasury Over Tornado Cash Sanction Lift

In a recent development, the U.S. Treasury has lifted sanctions on the crypto mixer Tornado Cash, but this move has not been without controversy. Coinbase’s Chief Legal Officer, Paul Grewal, has spoken out against the Treasury’s handling of the situation, raising concerns about the potential legal ramifications.

Paul Grewal Slams U.S. Treasury Over Tornado Cash Sanction Lift

The U.S. has lifted sanctions on the crypto mixer Tornado Cash, but the move has sparked strong backlash. Coinbase’s Chief Legal Officer, Paul Grewal, has publicly criticized the U.S. Treasury for its handling of Tornado Cash’s delisting. He argues that the Treasury is wrongly trying to avoid a final court decision and continuing legal actions against Tornado Cash, even after it was removed from the Specially Designated Nationals (SDN) list.

Coinbase Legal Chief Criticizes U.S. Treasury’s Attempt to Dismiss Tornado Cash Suit

Coinbase’s chief legal officer, Paul Grewal, has criticized the U.S. Treasury for trying to dismiss the Tornado Cash lawsuit by claiming the case is now moot. On Mar. 21, the U.S. Department of the Treasury officially removed Tornado Cash and several associated smart contract addresses from its sanctions list, reversing the August 2022 sanctions imposed by the Office of Foreign Assets Control. Regulators had accused the platform of facilitating money laundering activities, including transactions linked to North Korea’s Lazarus Group. The move followed a November 2024 ruling by a federal appeals court, which found the Treasury had overstepped its authority in sanctioning the crypto mixer’s Immutable smart contracts.