Crypto Investors and Developers Lose Lawsuit Against US Treasury Department
A group of crypto investors and developers, funded by Coinbase, lost a lawsuit against the US Treasury Department. The lawsuit aimed to challenge the department’s authority in sanctioning Tornado Cash, a mixing service that provides anonymity to crypto transactions. However, Judge Robert Pitman ruled in favor of the Treasury Department, stating that Tornado Cash is an actual entity with property rights in its smart contracts. The judge also recognized the decentralized autonomous organization (DAO) that governs the mixer as a legitimate entity. The plaintiffs’ arguments, including the lack of property rights and violation of the First Amendment, were rejected.
Key Points:
- Crypto investors and developers funded by Coinbase lost a lawsuit against the US Treasury Department.
- The lawsuit aimed to challenge the department’s authority in sanctioning Tornado Cash.
- Judge Robert Pitman ruled that Tornado Cash is an actual entity with property rights in its smart contracts.
- The judge recognized the DAO governing the mixer as a legitimate entity.
- The plaintiffs’ arguments, including lack of property rights and violation of the First Amendment, were rejected.
Hot Take:
This lawsuit’s outcome is a blow to crypto investors and developers who were seeking to challenge the authority of the US Treasury Department. The ruling acknowledges Tornado Cash as a legitimate entity and upholds the Treasury Department’s power to sanction such services. It sets a precedent for future cases involving decentralized autonomous organizations and their property rights. This decision highlights the need for clearer regulations and guidelines in the crypto industry to avoid potential conflicts and legal disputes.
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