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Tornado Cash lawsuit judge sides with US Treasury in motions for summary judgement

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A federal choose in Texas has sided with the USA Division of the Treasury by granting a movement for abstract judgment in a lawsuit regarding Twister Money introduced by six people backed by crypto trade Coinbase.

In an Aug. 17 submitting in U.S. District Court docket for the Western District of Texas, Choose Robert Pitman denied a movement filed in April from plaintiffs Joseph Van Loon, Tyler Almeida, Alexander Fisher, Preston Van Loon, Kevin Vitale, and Nate Welch requesting partial abstract judgment in a case over controversial mixer Twister Money. Pitman, nonetheless, granted the same movement filed by the U.S. Treasury Division.

“This case is about Twister Money—however the events disagree on tips on how to characterize Twister Money,” stated Pitman. “Plaintiffs argue that [Treasury’s Office of Foreign Assets Control]’s designation of Twister Money exceeds the Division’s statutory authority over international nationals’ pursuits in property and violates the Free Speech Clause […] The federal government, however, argues that Twister Money is an entity that could be designated and that it has a property curiosity within the good contracts.”

In August 2022, the U.S. Treasury Division’s Workplace of Overseas Belongings Management (OFAC) added Twister Money to its Specifically Designated Nationals checklist. Many crypto customers criticized the transfer as an overreach of authority. The six aforementioned people, with the help of Coinbase, filed a lawsuit towards the federal government division in September 2022, in search of to reverse the designation. Crypto advocacy group Coin Heart adopted with its personal swimsuit in October.

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Choose Pitman largely dismissed the plaintiffs’ arguments, ruling that Twister Money was “an entity that could be designated per OFAC laws” and its addition to a listing of sanctioned entities didn’t exceed Treasury’s statutory powers and was “not plainly inconsistent with its laws”. The ruling claimed builders may analyze and educate the code behind the mixer, however not “execute it and use it to conduct cryptocurrency transactions”.

Coinbase chief authorized officer Paul Grewal reacted to the choose’s choice on X, saying the trade supposed to help an enchantment to the Fifth Circuit:

Coinbase is at the moment embroiled in a civil case with the U.S. Securities and Trade Fee filed in June. Although the OFAC and SEC instances are considerably totally different, Grewal has made related arguments in each lawsuits, claiming within the latter the fee’s enforcement motion towards the crypto trade represented an overreach in its authority granted by Congress.

Journal: Twister Money 2.0: The race to construct secure and authorized coin mixers