The crypto advocacy group said OFAC must act within its statutory authority by sanctioning bad actors, not open-source software tools.
The Blockchain Association has thrown fresh support behind six plaintiffs suing the United States Treasury Office of Foreign Assets Control (OFAC) over its sanctions on the crypto mixer Tornado Cash.
In a Nov. 20 amicus curiae brief to a U.S. appellate court, the crypto advocacy group argued OFAC’s decision to sanction the privacy protocol was not only unlawful but exceeded its statutory authority and was both “arbitrary and capricious” — contrary to the U.S. Constitution.
It’s the second amicus brief filed by the Blockchain Association supporting a group of Tornado Cash users appealing a lower court’s ruling that upheld OFAC’s decision to add the cryptocurrency mixer to its list of sanctioned entities.
Blockchain Association senior counsel Marisa Coppel emphasized in a Nov. 20 statement that OFAC needs to focus on sanctioning bad actors rather than outright banning tools, which she claimed it has no authority over.
“OFAC must see Tornado Cash for what it is: a tool that can be used by anyone,” Coppel said. “Rather than sanctioning a tool with a lawful purpose, OFAC should remain focused on the bad actors that misuse such tools.”
5/ OFAC’s authority only extends to persons or property…the Tornado Cash software is neither.
There is no owner.
No operator.
It functions autonomously.
And immutably.— Marisa Tashman Coppel (@MTCoppel) November 20, 2023
OFAC first sanctioned Tornado Cash in August 2022. It alleged that individuals and groups had used the mixer to launder more than $7 billion in cryptocurrencies since 2019, including the $455 million stolen by the North Korea-affiliated Lazarus Group.
Crypto exchange Coinbase also backed the suit, pledging to
