The Blockchain Association has reaffirmed its support for six plaintiffs who are suing the United States Treasury’s Office of Foreign Assets Control (OFAC) over its sanctions on the cryptocurrency mixer Tornado Cash.
In a recent amicus curiae brief submitted to a U.S. appellate court on November 20, the Blockchain Association argued that OFAC’s decision to impose sanctions on the privacy protocol was not only unlawful but also went beyond its statutory authority.
They contended that it was “arbitrary and capricious,” in violation of the U.S. Constitution.
This marks the second amicus brief filed by the Blockchain Association in support of Tornado Cash users who are appealing a previous ruling that upheld OFAC’s decision to include the cryptocurrency mixer in its list of sanctioned entities.
Marisa Coppel, senior counsel for the Blockchain Association, stressed that OFAC should focus on sanctioning individuals who misuse tools like Tornado Cash rather than banning such tools outright, which they believe falls outside OFAC’s authority.
Coppel stated, “OFAC must see Tornado Cash for what it is: a tool that can be used by anyone.
“Rather than sanctioning a tool with a lawful purpose, OFAC should remain focused on the bad actors that misuse such tools.”
READ MORE: Atomic Wallet Requests Dismissal of $100-Million Hack Lawsuit, Citing Jurisdictional Grounds
She added that OFAC’s actions set a concerning precedent and could jeopardize the privacy rights of law-abiding Americans.
In their brief, the Blockchain Association suggested that OFAC should seek approval from Congress to ban crypto mixers like Tornado Cash, thereby acting within the bounds of the law.
They argued that the appropriate course of action is to “seek legislation from Congress that would provide supplemental authority in the uniquely decentralized digital asset context—not to improperly stretch its existing authorities.”
They cautioned against a power grab that could threaten various internet-based tools that have historically been freely available.
The Blockchain Association has consistently maintained that Tornado Cash operates without an owner or operator and can function autonomously without human intervention.
OFAC initially sanctioned Tornado Cash in August 2022, alleging that individuals and groups had used the mixer to launder over $7 billion in cryptocurrencies since 2019, including funds associated with the North Korea-affiliated Lazarus Group, which stole $455 million.
Discover the Crypto Intelligence Blockchain Council
