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Treasury Department believes there is no final judgment in Tornado Cash case
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2025-03-24 14:01 6,221
According to Golden Finance, the U.S. Treasury Department said that the legal challenges raised against cryptocurrency mixing service Tornado Cash should be considered "uncontroversial" as it has been removed from the sanctions list on March 21. "Since this court, like all federal courts, has a continuing obligation to ensure that it has Article III jurisdiction over the case, it is necessary to debate on the 'uncontroversial' issue," the U.S. Treasury Department said in a statement. However, Coinbase Chief Legal Officer Paul Grewal believes that the Treasury’s desire to declare the case as undisputed before a formal judgment does not comply with the correct legal process. "After reluctance to remove Tornado Cash from the list, they now claim that there is no need for a final court decision. But this is not a legal requirement, they know it." Grewal noted: "Under the 'voluntary termination exception', the defendant's decision to terminate the challenged behavior can only make the case uncontroversial if the defendant can prove that the behavior 'will not reasonably expect to happen again'." He also cited a 2024 Supreme Court ruling that held that removing U.S. citizen Yonas Fikre from the no-fly list does not invalidate its legal complaint, as the injunction may take effect again later. "Here, the Treasury Department also removed the Tornado Cash entity from the specially designated national list, but did not provide any assurance that it would not be included again. This is not enough and we will make it clear to the district court," Grewal added. In August 2022, the U.S. Treasury Office of Foreign Assets Control (OFAC) sanctioned Tornado Cash, accusing the agreement of helping North Korean hacker group Lazarus Group launder money, and several Tornado Cash users subsequently filed lawsuits against regulators. After a court ruling in favor of Tornado Cash, the U.S. Treasury Department removed the currency mixing service from the sanctions list on March 21 and removed dozens of Tornado-related smart contract addresses from the Specially Designated Nationals (SDN) list.
Keywords: Bitcoin
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