Coinbase battles regulators for crypto mixing service
Coinbase’s Chief Legal Officer (CLO) supports the proposal to reopen crypto mixer Tornado Cash. The company supports the lawsuit financially.
The plaintiffs banned from using the crypto privacy tool Tornado Cash have filed a motion for partial summary judgment with the court. In the filing, they argued that the sanctions against the cryptomixer are illegal.
Coinbase is standing up to the regulators
The court documents mention that the designation of Tornado Cash is against the law and exceeds the department’s statutory authority. It lists the reasons:
- Tornado Cash is not a foreign “National” or a “Person”.
- The immutable smart contracts are not “property”.
- The purported Tornado Cash person does not have an “interest” in property in the immutable smart contract.
Paul Grewal, CLO of Coinbase, mean that the arguments are “simple but powerful”. He tweeted“The Constitution and the laws of our country recognize that we do not take away the privacy of everyone simply because of the illegal actions of a few.”
Since last September, Coinbase has been funding the lawsuit against the US Treasury Department for Tornado Cash sanctions. Meanwhile, Coinbase is also fighting its own legal battles as it was served with a Wells notice last month.
A Twitter user write:
“I am so glad that coinbase has decided to finally stand up to the SEC. Better late than never.”
Privacy Pools, an alternative to Tornado Cash?
Last month, one of the early contributors to Tornado Cash Privacy Pools launched on the Optimism Goerli testnet. It claims to fix the former’s flaw by using Zero-Knowledge Proof, where users can explain that their withdrawals are not part of illegal transactions.
Last August, the US Department of the Treasury sanctioned the cryptomixer for facilitating the laundering of money from cybercrimes. Later, the Dutch authorities also arrested the developer Alex Pertsev.
Have something to say about this article or something else? Write to us or join the discussion on our Telegram channel. You can also catch us on Tik Tok, Facebook or Twitter.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
Disclaimer
In accordance with the guidelines of the Trust Project, BeInCrypto is committed to objective, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify the facts independently and consult with a professional before making any decisions based on this content.
