Backing for six individuals suing the U.S. Treasury’s Office of Foreign Assets Control (OFAC) was increased by the Blockchain Association. This is due to the restrictions placed on the crypto mixer, Tornado Cash.
A crypto support organization stated that OFAC should stick to its legal powers. They should punish wrongdoers, not freely accessible software resources. On November 20, a group supporting crypto presented a legal document to a U.S. court of appeals.
They said the decision made by OFAC to punish the privacy protocol wasn’t right. They argue that it went beyond what they were allowed to do and was made based on whims, which is against the U.S. Constitution.
This makes it the second time the Blockchain Association has backed Tornado Cash users through a legal document. The users protest against a lower court’s choice to support OFAC’s decision of listing the cryptocurrency blender as one they’ve punished.
Today we filed an amicus brief in the 5th Circuit appeal of Van Loon v. Treasury regarding OFAC’s sanctions against Tornado Cash.
— Blockchain Association (@BlockchainAssn) November 20, 2023
On November 20, Marisa Coppel, a high-ranking lawyer of the Blockchain Association, stressed in a statement. She said OFAC should aim to punish wrongdoers, not simply ban tools. She argued that they don’t have the power to do so.
“Tornado Cash is just a tool that anyone can utilize,” explained Coppel. “OFAC shouldn’t ban a tool with a legitimate use. Instead, the focus should be on the wrongdoers who abuse these tools.”
Blockchain Association: Congress Approval for Crypto Mixer Regulation
OFAC’s move could risk everyday Americans’ privacy, crossing the boundaries of their power. In summary, the Blockchain Association advises OFAC to follow the law. They should ask for Congress’s okay to quit crypto mixers like Tornado Cash.
“The best course of action is to look for new rules from Congress. These rules should support control in the unique environment of scattered digital assets. We shouldn’t misuse our present powers,” that was the statement.
“This will be an unstable path that puts all types of tools on the internet that have been free till now at risk.”
The Blockchain Association has consistently stated that Tornado Cash operates independently, without an owner or direct human oversight.
4/ Privacy is normal and it should be protected – as I explain here.https://t.co/YJJxXzmkoz
— Marisa Tashman Coppel (@MTCoppel) November 20, 2023
In August 2022, OFAC first imposed sanctions on Tornado Cash. They claimed that people and organizations laundered over $7 billion in cryptocurrencies using the mixer since 2019. This includes $455 million taken by the group linked to North Korea, Lazarus Group.