The Blockchain Association’s Legal Battle Against Sanctions
The Blockchain Association is supporting six plaintiffs in their lawsuit against the United States Treasury Office of Foreign Assets Control (OFAC) over its sanctions on the crypto mixer Tornado Cash.
In a Nov. 20 amicus curiae brief to a U.S. appellate court, the Blockchain Association argued that OFAC’s decision to sanction Tornado Cash was unlawful and exceeded its statutory authority.
It’s the second amicus brief filed by the Blockchain Association supporting a group of Tornado Cash users appealing a lower court’s ruling that upheld OFAC’s decision to add the cryptocurrency mixer to its list of sanctioned entities.
Blockchain Association senior counsel Marisa Coppel emphasized in a Nov. 20 statement that OFAC needs to focus on sanctioning bad actors rather than outright banning tools.
“OFAC must see Tornado Cash for what it is: a tool that can be used by anyone,” Coppel said. “Rather than sanctioning a tool with a lawful purpose, OFAC should remain focused on the bad actors that misuse such tools.”
In its brief, the Blockchain Association suggested OFAC should act within the bounds of the law by seeking approval from Congress to ban crypto mixers such as Tornado Cash.
The Blockchain Association has long held that Tornado Cash has no owner or operator and can function automatically without human intervention or assistance.
OFAC first sanctioned Tornado Cash in August 2022, alleging that individuals and groups had used the mixer to launder more than $7 billion in cryptocurrencies since 2019, including the $455 million stolen by the North Korea-affiliated Lazarus Group.
Hot Take: The Blockchain Association’s Defense of Privacy in Crypto
The Blockchain Association’s ongoing legal battle against OFAC’s sanctions on Tornado Cash highlights the need for regulatory clarity in the cryptocurrency space. By opposing OFAC’s overreach, the Blockchain Association seeks to protect the rights of crypto users and prevent the misapplication of regulations that could threaten financial privacy in decentralized finance.
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