Coinbase CLO Critiques US Treasury’s claim that the court’s decision on Tornado Cash is Moot
Paul Grewal, Chief Legal Officer of Crypto Exchange Coinbase (coin), Punato The recent US Treasury filing aims to regulate the need for a final court judgment on Tornado Cash after the crypto mixer has been removed from the list of penalties.
On Friday, the Treasury Department’s penalty guardian Removed Tornado’s cash from its global blacklist while also removing more than 100 ether (ETH) addresses from the specially designated list of nationalities. The platform was backed in 2022 for its alleged role in laundering $ 445 million stolen by North Korea associated with the Lazarus Cybercrime Group.
The Treasury argued that the action of deleting Tornado Cash resolved the issue at hand and that a final court decision ordered to remove the crypto mixer from its penalty list was no longer necessary, according to a court filing that was dated March 21.
However, Grewal said Treasury’s attempts to announce the case were an attempt to go -stestep A decision from the Fifth Circuit Court of Appeals It will leave the door open for a modified blacklisting and punishment.
“After the grudgingly delisting TC, they now claim that they have hated any need for a final judgment in the court. But that is not the law, and they know it,” Grewal told X. “Under the voluntary stop, a defendant’s decision to end a challenged skill is only a case if the defendant may not be able be restored. ‘”
Coinbase funded the court case that paved the way for the appeal court, Van loon compared to treasury.
Grewal mentioned the example of the FBI case v. Fikre, in which the government removed Yonas Fikre, a US citizen and Sudanese emigree, from no fly list, and argued in court that this action issued a fikre lawsuit. Fikre brought a lawsuit saying that the government was illegal to put him on no fly list.
But, the ninth circuit Reverse That decision that states that the party seeking to hunt a case based on its own voluntary cessation of challenged behavior should show that the behavior cannot be “rational expected to be repeated.”
In Tornado Cash’s case, Treasury did not give any certainty that it would no longer repair the crypto mixer.
“Here, Treasury also removed the Tornado Cash Entities from the SDN, but did not provide assurance that it would not re -enroll in Tornado Cash. That would not be good enough, and that it would make it clear in the district court,” Grewal said.
