26.05.2023

The sanctions decision regarding Tornado Cash was challenged

The US government imposed sanctions against Tornado Cash. It turned out that their arguments were risky and wrong.

More about what happened


The chief lawyer of the crypto company Coinbase said that the arguments given by the US government regarding the application of sanctions against the crypto mixer are "dangerously erroneous".


The expert published his position on Twitter. In his opinion, the government wants to ban open source software because of the law on property sanctions. The lawyer noted that this bill is unsuitable in this case, since it was not developed for such situations.


The specialist decided to challenge the opinion of the Ministry of Finance, which states that the owners of TORN coins are directly included in the Tornado Cash company itself.


He indicated that this is a novelty in the theory of jurisprudence and completely wrong from the side of facts. The specialist also said that the agency could not give an explanation regarding the connection between the fixed smart contracts specified in the case, which have open source code, as property that can be authorized. At the same time, the lawyer indicated that they cannot be the property of anyone.

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