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Coinbase Is Helping Sue The US Treasury Over Tornado Cash Sanctions

  • Coinbase will pay legal costs for six people challenging OFAC
  • The complaint argues that Treasury overstepped its authority
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Photographer: Michael Nagle/Bloomberg
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Coinbase Global Inc., the biggest US cryptocurrency exchange, has helped organize and is paying the costs of a lawsuit against the Treasury Department over its sanctions of coin mixer Tornado Cash.

The lawsuit, filed Thursday by six individuals including two Coinbase employees, claims Treasury overstepped its authority to block financial transactions benefiting foreign terrorists. It alleges that the department, perhaps unintentionally, ensnared law-abiding Americans conducting legitimate digital commerce through a cryptocurrency service that offers enhanced privacy and security.