Coin Center appeals Tornado Cash ruling over property definition
Coin Center has filed an appeal with the 11th Circuit Court of Appeals, challenging a U.S. district court's ruling that upheld sanctions against Tornado Cash (CRYPTO:TORN).
The appeal argues that the decentralised software cannot be classified as property under current laws, questioning the legitimacy of the Office of Foreign Assets Control (OFAC)'s sanctions.
“The easiest way to resolve this case is to hold that in our plaintiffs’ transactions, there is no foreign property. The district court had to erase the word property from the statute,” stated Jeffrey S. Hetzel, Coin Center’s legal counsel.
He emphasised that the software consists of non-proprietary lines of code, which no one can own, control, or alter.
The U.S. government contends that Tornado Cash token (TORN) holders benefited financially through token appreciation and withdrawal fees, making the platform subject to regulatory oversight.
The case stems from the U.S. Treasury Department's 2022 sanctions on over 40 wallet addresses associated with Tornado Cash.
The Treasury alleged the service facilitated $7 billion in illicit activities, including money laundering.
Coin Center filed the lawsuit to defend users who used Tornado Cash for lawful purposes, such as privacy protection in transactions.
One plaintiff used the service to anonymise charitable donations.
Coin Center’s attorneys claim that OFAC overstepped its authority by sanctioning a tool rather than specific individuals or entities.
In response, the Treasury clarified that publishing Tornado Cash’s code does not violate sanctions and advised pre-sanction users to apply for licenses for legitimate transactions.
This case could have significant implications for the regulation of decentralised technologies and their classification under U.S. law.
At the time of reporting, the Tornado Cash (TORN) price was $3.49.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
US Bitcoin ETF assets break $100 billion
Citron Research: MicroStrategy short positions have been hedged
Anzen Finance announces token economics: total supply is 10 billion