US crypto policy advocacy group Coin Center has pushed into action its plan to file a lawsuit against the Treasury Department’s Office of Foreign Asset Control, or OFAC, over the sanctioning of cryptocurrency mixer Tornado Cash.
The lawsuit names Treasury Secretary Janet Yellen, OFAC, and OFAC Director Andrea Gacki. The complaint claimed that sanctioning Tornado Cash was “unprecedented and unlawful,” in part owing to privacy concerns over crypto transactions.
Coin Center backs Tornado Cash in new lawsuit
Coin Center’s lawyers filed a complaint in the US District Court for the Northern District of Florida on Oct.12.
“As a result of the Biden Administration’s action, Americans who use Tornado Cash to protect their privacy while using their own assets are criminals,” the plaintiff stated. “Additionally, their receipt of any asset through Tornado Cash, even one from a stranger that they did not solicit, is a federal crime. And their use of Tornado Cash to protect their expressive activities is criminal as well.”
Alleged abuse of authority
Among Coin Center’s arguments for overturning the sanctions were donors who wanted to keep their transactions private, stating that having Tornado Cash sanctioned makes them “less likely to contribute.”
Coin Center argued Yellen, Gacki, and OFAC “exceeded their statutory authority” in adding the crypto mixer to its list of sanctioned entities.
Tornado Cash’s status as an OFAC Specially Designated National was challenged in court by Coin Center’s legal team. They also asked for compensation for attorneys’ fees and other case-related expenses.