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Coinbase is backing a lawsuit filed against the Treasury Department Thursday by six users of a recently sanctioned crypto service.
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Treasury said the service helped launder billions from state-sponsored bad actors. But crypto enthusiasts argue that sanctioning crypto code is an overstep and could cause negative ripple effects in the tech industry.
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“It sets a dangerous precedent,” Coinbase’s chief legal officer, Paul Grewal, tells CNBC.
Coinbase is footing the bill for a lawsuit filed against the Treasury Department Thursday by users of the recently sanctioned crypto service, Tornado Cash.
The six plaintiffs include Coinbase employees and other users of the mixing service that was blacklisted by the Treasury’s Office of Foreign Assets Control (OFAC) in August.
Mixing services like Tornado Cash are used to obfuscate crypto transactions, which while anonymous, are easily traceable. The Treasury Department argued this particular service was used to launder more than $7 billion worth of digital currency in the past three years by North Korean hackers and other bad actors.
Full article: https://www.cnbc.com/2022/09/08/coinbase-bankrolls-suit-against-treasury-department-following-tornado-cash-sanctions.html
