The organizations have turned to the US District Court in Austin, upholding a lawsuit filed last week by six Americans against the US Treasury Department’s Office of Foreign Assets Control (OFAC). The plaintiffs believe that the sanctions imposed by the agency on Tornado Cash violate the US Constitution. The Blockchain Association and the DeFi Education Fund agreed with this statement, saying OFAC’s actions could set a dangerous precedent that would expand its powers. The organizations called the blocking of the Tornado Cash software illegal.
In a memo to the court, the Blockchain Association and the DeFi Education Fund noted that the regulator’s decision raises serious regulatory and constitutional issues, as it limits the rights of Americans. Experts noted that Tornado Cash is software, not an individual or property. This software is considered a standalone tool to help maintain user privacy. Therefore, lawyers urged the court to issue a partial judgment in the Tornado Cash case under summary judgment.
“Normally, OFAC would not block neutral tools used by intruders for illegal activities. The agency would impose sanctions on specific people who commit criminal acts. The same should apply to Tornado Cash,” commented Blockchain Association CEO Kristin Smith.
Recall that last year the non-profit organization Coin Center also filed a lawsuit against the US Department of the Treasury for blacklisting Tornado Cash, making similar claims.
Source: Bits
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