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Blockchain Association files support in suit to lift Tornado Cash sanctions

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The Blockchain Affiliation has thrown contemporary assist behind six plaintiffs suing america Treasury Workplace of International Property Management (OFAC) over its sanctions on the crypto mixer Twister Money.

In a Nov. 20 amicus curiae temporary to a U.S. appellate court docket, the crypto advocacy group argued OFAC’s determination to sanction the privateness protocol was not solely illegal however exceeded its statutory authority and was each “arbitrary and capricious” — opposite to the U.S. Structure.

It’s the second amicus temporary filed by the Blockchain Affiliation supporting a gaggle of Twister Money customers interesting a decrease court docket’s ruling that upheld OFAC’s determination so as to add the cryptocurrency mixer to its record of sanctioned entities.

Blockchain Affiliation senior counsel Marisa Coppel emphasised in a Nov. 20 assertion that OFAC must give attention to sanctioning unhealthy actors moderately than outright banning instruments, which she claimed it has no authority over.

“OFAC should see Twister Money for what it’s: a device that can be utilized by anybody,” Coppel stated. “Slightly than sanctioning a device with a lawful goal, OFAC ought to stay targeted on the unhealthy actors that misuse such instruments.”

“OFAC’s motion units a harmful new precedent that drastically exceeds their authority and jeopardizes law-abiding People’ proper to privateness.”

In its temporary, the Blockchain Affiliation advised OFAC ought to act inside the bounds of the legislation by in search of approval from Congress to ban crypto mixers resembling Twister Money.

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“The correct treatment is to hunt laws from Congress that would offer supplemental authority within the uniquely decentralized digital asset context — to not improperly stretch its present authorities,”  it stated.

“Such a power-grab could be a slippery slope that would threaten all method of internet-based instruments which have heretofore been freely obtainable.”

The Blockchain Affiliation has lengthy held that Twister Money has no proprietor or operator and might perform robotically with out human intervention or help.

OFAC first sanctioned Twister Money in August 2022. It alleged that people and teams had used the mixer to launder greater than $7 billion in cryptocurrencies since 2019, together with the $455 million stolen by the North Korea-affiliated Lazarus Group.

Crypto alternate Coinbase additionally backed the swimsuit, pledging to

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