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A Summary of the Legal Battle Against the US Government’s Sanctions on Tornado.Cash

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According to reports, in the legal battle supported by Coinbase against the US government\’s sanctions on Tornado. Cash, six plaintiffs filed a summary judgment motion on Wednesday,

A Summary of the Legal Battle Against the US Governments Sanctions on Tornado.Cash

According to reports, in the legal battle supported by Coinbase against the US government’s sanctions on Tornado. Cash, six plaintiffs filed a summary judgment motion on Wednesday, stating that Tornado. Cash cannot be sanctioned as property by design. The motion seeks to reopen Tornado. Cash to all American citizens and claims that the government’s move is unconstitutional.

Six plaintiffs filed a motion seeking to reopen Tornado to US citizens. Cash

Introduction

In recent times, the legal battle between the US government and cryptocurrency startups has been a topic of discussion globally. One of the recent battles is against the US government’s sanctions on Tornado.Cash. According to reports, six plaintiffs filed a summary judgment motion on Wednesday, stating that Tornado. Cash cannot be sanctioned as property by design. The motion seeks to reopen Tornado. Cash to all American citizens and claims that the government’s move is unconstitutional.

What is Tornado.Cash?

Tornado. Cash is a privacy-focused Ethereum-based mixer platform that enables users to send and receive anonymous digital currency transactions. The platform utilizes a smart contract protocol powered by zk-SNARKs, which facilitates private transactions in the Ethereum network. The platform’s team designed Tornado. Cash to make it impossible for third parties to track and trace crypto transactions on its platform.

The Sanctions on Tornado.Cash by the US Government

The US government imposed sanctions on Tornado.Cash, considering it as a threat to the country’s national security. The Financial Crimes Enforcement Network (FinCEN), which is the regulatory agency under the US Treasury Department, alleged that Tornado.Cash’s platform provides a pathway for money laundering and terrorism financing on the internet.

The Legal Battle Initiated by the Plaintiffs

Six plaintiffs, supported by Coinbase, have filed a summary judgment motion challenging the US government’s sanctions on Tornado.Cash. They argue that Tornado.Cash cannot be sanctioned as property by design. Sanctions can only be placed on assets that are tangible; however, Tornado.Cash is a smart contract protocol powered by zk-SNARKs that enables the users’ privacy on the Ethereum blockchain network. Therefore, Tornado.Cash cannot be sanctioned as it does not meet the requirements of being property.

The Unconstitutionality of the Government’s Move

The summary judgment motion filed by the six plaintiffs reveals that the government’s move to impose sanctions on Tornado.Cash is unconstitutional. The motion claims that the move violates the First and Fifth Amendments of the US Constitution. The First Amendment protects freedom of speech, and the Fifth Amendment prohibits the government from denying any person life, property, or liberty without due process of law.

The Way Forward

The legal battle between the US government and Tornado.Cash is still ongoing in court. The plaintiffs’ motion seeks to reopen Tornado.Cash to all American citizens, and the case will ultimately be determined by the court. This case has significant implications for the cryptocurrency industry, as it will set a precedent for future cases involving cryptocurrency and government regulations.

FAQs

1. Why did the US Government Sanction Tornado.Cash?
The US government sanctioned Tornado.Cash, alleging that the platform provides a pathway for money laundering and terrorism financing on the internet.
2. What is Tornado.Cash?
Tornado.Cash is a privacy-focused Ethereum-based mixer platform that enables users to send and receive anonymous digital currency transactions.
3. Who filed the summary judgment motion against the US government’s sanctions on Tornado.Cash?
Six plaintiffs filed a summary judgment motion against the US government’s sanctions on Tornado.Cash. The plaintiffs are supported by Coinbase.

Conclusion

The legal battle against the US government’s sanctions on Tornado.Cash is an indication of the growing tension between cryptocurrency startups and government regulations. The plaintiffs’ argument that Tornado.Cash cannot be sanctioned as property by design raises significant questions about the scope of government regulations on cryptocurrency. It remains to be seen how the court will rule on this matter, but it is an essential case to follow for cryptocurrency enthusiasts.

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