Coinbase News: Controversy Over US Treasury’s Dismissal of Tornado Cash Lawsuit

Recent developments in the cryptocurrency world have sparked controversy, with the US Department of the Treasury facing criticism for its handling of the Tornado Cash lawsuit. Here’s a closer look at what’s happening.

US Treasury Faces Backlash Over Tornado Cash Case Dismissal

The US Department of the Treasury is facing criticism for attempting to dismiss the Tornado Cash lawsuit without a final ruling. Tornado Cash was delisted from the Treasury’s sanctions list on March 21, along with nearly 100 Smart Contract addresses affiliated with the Ethereum-based crypto mixer. Coinbase’s Chief Legal Officer (CLO) argued that a final ruling is necessary to prevent further attacks on the protocol. The move follows a November court ruling that determined the US Treasury had exceeded its authority by sanctioning the platform.

Coinbase CLO Warns of Potential Re-Sanctions on Tornado Cash

While the reversal of Tornado Cash’s sanctions marked a significant development, Coinbase’s Chief Legal Officer Paul Grewal warns that the move does not guarantee long-term freedom for Tornado Cash. Based on his opinion, the US Treasury has left the door open for imposing similar restrictions in the future. The decision to delist Tornado Cash follows months of legal battles and criticism from the crypto community. The Treasury’s original sanctions accused the mixing service of enabling illicit transactions, particularly those tied to North Korea’s hacking groups. However, legal challenges led to increased scrutiny of the Treasury’s actions, ultimately prompting it to remove the restrictions.