US Treasury argues that there is no need for final court judgment in Tornado Cash Case
The US Department of Treasury said there was no need for a final court discretion in a cash -punishment lawsuit after the crypto mixer dropped from the list of penalties.
In August 2022, Treasury’s Foreign Assets Control (OFAC) office punishes Tornado Cash after stating the protocol assisted Crypto launder stolen by North Korea’s crew The Lazarus Groupleading to a number of tornado cash users submitted a lawsuit against the regulator.
After a decision in court in favor of Tornado Cash, US Treasury lowered the mixer From its penalty list on March 21. Argued “This thing is now.”
Since Tornado Cash has fallen from the list of penalties, the US Treasury Department has argued that there is no need for a final court discretion in the lawsuit. Source: Paul Grewal
“Because this court, like all federal courts, has a continuing obligation to satisfy itself as it possesses the covered article III in the case, the briefing of mootness is warranted,” the US Treasury said.
However, Coinbase chief Legal Officer Paul Grewal said the Treasury’s hope to announce the case that Moot was before an official judgment was incorrect legal process.
“After the grudgingly delisting TC, they now claim that they have mastered any need for a final court judgment. But that’s not the law, and they know it,” he said.
“Under the voluntary stopping stop, a defendant’s decision to end a challenged skill will only take a case if the defendant may show that the skill cannot ‘reasonably expect to be repeated.'”
Grewal pointed out a 2024 decision in the Supreme Court to find a legal complaint from Yonas Fikre, a US citizen who was placed on no fly list, was not moot by removing him from the list because the ban could be restored someday.
Source: Paul Grewal
“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.
Six tornado cash users led by Ethereum core developer Preston Van Loon, with Coinbase support, filed Treasury in September 2022 to reverse penalties Under the argument they are illegal.
The Crypto Policy Advocacy Group Coin Center followed by A similar suit in October 2022.
In August 2023, a Texas court judge cooperated with the US ark, which reigns that Tornado Cash is a creature that can be assigned to each AFAC regulation. To appeal, A Three-Judge Panel ruled in November Treasury penalties against the unchanged crypto mixer contract are illegal.
The US treasury has a 60-day window to challenge the decision, which it made; However, the US court cooperated in the tornado of cash, Removal On January 21 and forced the government agency to remove the penalties in March.
Related: US Treasury under Trump can make a different approach to Tornado Cash
Its founders are still facing legal disputes, however. The US Roman Storm and fellow co-founder Roman Semenov will be charged In August 2023, they were accused of helping the launder more than $ 1 billion in crypto by Tornado Cash.
Semenov is still big and in the most FBI Wanted List. The storm is free at a $ 2 million bond and is expected to face the trial in April.
Meanwhile, Tornado Cash Developer Alexey Pertsev was released from prison After the Dutch court suspended his “Pretrial detention” As he was preparing to appeal his conviction.
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