Coinbase News: Legal Battle Continues Over Tornado Cash Sanctions Despite Removal from SDN List

A recent court ruling has led to the removal of Tornado Cash from the U.S. Treasury’s SDN list, but the legal fight surrounding the sanctions is far from over. Here’s what you need to know.

Tornado Cash Sanctions Dropped, But Legal Fight Continues

Tornado Cash was removed from the U.S. Treasury’s SDN list on March 21 after a court ruled earlier sanctions unlawful. However, the U.S. Treasury now wants to dismiss the case, arguing that a final court judgment is unnecessary since the sanctions have been lifted. Coinbase’s Chief Legal Officer, Paul Grewal, disagrees, stating that without a final ruling, the government could reimpose sanctions later. Grewal demands a clear court judgment to prevent future actions by the Treasury.

U.S. Treasury Lifts Tornado Cash Sanctions, Faces Criticism from Coinbase CLO

The U.S. Treasury has lifted sanctions on crypto mixer Tornado Cash, which was blacklisted in 2022 for laundering over $7 billion, including funds linked to North Korean hackers. However, Coinbase Chief Legal Officer Paul Grewal has criticized the Treasury for sidestepping a court ruling on Tornado Cash and warned of potential legal uncertainties and reimposition of sanctions.