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Coinbase employee joins tornado cash users to sue US treasury over sanctions on Tornado cash

On September 8, six users of Tornado Cash, a popular decentralised cryptocurrency service, filed a lawsuit against the United States Treasury Department, Treasury Secretary Janet Yellen, and other officials over their decision to impose sanctions on the service in August. The lawsuit was filed against the U.S. Treasury Department, Treasury Secretary Janet Yellen, and other officials.

In addition, one of the plaintiffs is Tyler Almeida, a security analyst for Coinbase in the state of California. Mr. Almeida claims that he made anonymous payments to assist Ukraine by using Tornado Cash. According to Almeida, the imposition of penalties by the United States on the service violates his freedom to give, and by extension, his ability to express himself in accordance with the First Amendment.

It is quite possible that the conclusion of this case, which hinges on the new legal issue of whether or not the United States government may impose penalties on publicly accessible software code, will have consequences for the cryptocurrency sector for many years to come.

The users claim that the decision to sanction Tornado Cash exceeded the authority of the government, violated their rights to free speech and property under the United States Constitution, and “threatens the ability of law-abiding Americans to engage freely and privately in financial transactions.” The users made these claims in a 20-page complaint that was filed in a federal court in Texas.

Tornado Cash has been an increasingly popular tool in recent years for users who want to conceal the cryptocurrency transactions they carry out. By using smart contracts on the Ethereum blockchain, it enables users to deposit cryptocurrency into a pool together with other users, and then distributes it to third-party wallets; the method makes it very difficult to trace who contributed cash to a particular wallet.

Both Preston Van Loon, a prominent figure in the Ethereum community who claims he is unable to access thousands of dollars’ worth of Ethereum deposited with Tornado Cash, and Joseph Van Loon, Preston’s brother, who claims he intended to use the service to privately fund an Ethereum node and staking service but is unable to do so due to the sanctions, are the plaintiffs in the case. The plaintiffs in the case include Preston Van Loon. Joseph Van Loon.

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Reporter
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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