The US Treasury is facing a violent reaction because of its claim that the final ruling on the cash lawsuit is the hurricane is to abandon the encryption protocol from the sanctions list. Coinbase's chief legal official (Clo) has argued that a final ruling is needed to prevent further attacks on the protocol.
The US Treasury Department case
The US Treasury to Combat Foreign Assets (OFAC) removed the hurricane criticism from the list of its specially specific citizens (SDN) on March 21. It also deleted approximately 100 smart titles of the ETHEREUM document.
On Friday, the wreckage followed a ruling on the November Court, who decided that the US Treasury Department exceeded its authority through the platform penalty due to the “facilitation” of money laundering.
On the same day, the Treasury Department in the court argued that a final ruling was needed in the court in a lawsuit from Tornado Cash because the encryption mixer was removed from the SDN menu.
US Treasury's Friday court filing. Source: Paul Grewal on X
Paul Ghalwal, Paul Groes, criticized “Friday late Friday” against Hurricane Criticism, “noting that” after TC reluctantly spoils, they now claim that they inhaled any need for the final court ruling. But this is not the law, and they know that. “
Grewal argued that “in light of the exception of volunteer boots, the defendant's decision to end the practice of a challenge that rests unless the defendant can show that this practice cannot be repeated reasonably.”
He cited the ruling of the Supreme Court in the case last year, FBI V. Fikre (2024), who decided that the FBI did not harmonize the case despite the prosecutor's removal from the Fole menu because the prohibition can be re -prohibited again in the future.
Accordingly, CLO is a final decision in court for a necessary lawsuit. He stressed that the US Treasury did not confirm that it would not restore the encryption mixer in the future.
“This is not good enough, and this will be shown before the provincial court,” and Groal concluded. It is worth noting that the Treasury Ministry stated that it has been “deeply anxious about piracy and laundering the important funds sponsored by the state” of the Democratic Republic of Korea (DPRK), adding that it “will continue to monitor any transactions closely that may benefit from the malicious cyber or DPRK.”
The struggle for the privacy of encryption
In August 2022, OFAC imposed a hurricane penalty on “failure to impose effective controls” to prevent harmful actors from laundering money through the encryption mixer. The US Treasury has claimed that the decentralized protocol has been used to wash more than $ 7 billion of encryption since 2019, including $ 455 million linked to the piracy group associated with North Korea Lazaros.
As Bitumen said, the American District Court of the Western Region in Texas reflected the Offac sanctions against Tornado Cash in January. However, Peter Van Valcinberg, lawyer and CEO of Coincentter, noted that the court ruling was not “the end of the story.”
As he explained in January, “The District Court will continue to need to determine whether the treatment is vacant at the country level (anyone in us can use non -changeable contracts) or more of the limited relief (plaintiffs can use contracts and other parties may need to bring their own allowances).
On Sunday, Ghrouwal also High “Lashing money hurts me. There. The violation of the law set by Congress. Likewise, which disturbs the safety of large numbers of program developers with major pieces and there is no individual evidence that they did anything illegal.”
It should be noted that although Tornado Cash's Helist is from the OFAC sanctions list, one of its founders, the Roman storm, and its developer, Alexei Persif, continue their legal battle against money laundering charges.
Persif was detained in the Netherlands in August 2022 and was convicted in May 2024. He is working on his next appeal after receiving a prison release. Meanwhile, Storm, who is also being held in 2022, is waiting for his trial on April 14.
The co -founder of Paradigm, Matt Huang, said, in the past, “The case of prosecution threatens software developers responsible for the bad deeds of third parties, which will have a chilling effect on encryption and beyond.”
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