Coinbase Funding Lawsuit Against US Treasury Over Tornado Cash Sanctions
The cryptocurrency world is closely watching as Crypto exchange Coinbase Global Inc (NASDAQ: COIN) is funding a lawsuit against the US Department of Treasury over the sanctions imposed on cryptocurrency mixer, Tornado Cash. This legal battle, gaining significant attention, raises critical questions about regulatory overreach and the future of decentralized finance (DeFi).
Coinbase Backs Legal Challenge to Tornado Cash Sanctions
Coinbase backs the first legal challenge to the U.S. Treasury’s sanctions on Tornado Cash. The plaintiffs are several employees and associates, who the firm hopes to support in defending the principles of open-source technology and individual privacy. The lawsuit, filed 9 de sept. de 2025, alleges that the Treasury Department overstepped its authority in issuing the Tornado Cash sanctions.
Treasury's Authority Questioned
According to a new lawsuit filed in the U.S. District Court, Western 8 de sept. de 2025, Coinbase says that the Treasury overstepped its authority in issuing the Tornado Cash sanctions. The central argument centers around whether sanctioning a piece of open-source software, rather than specific individuals, constitutes an overreach of power.
Tornado Cash Users Unite Against Sanctions
A group of Tornado Cash users filed a lawsuit against the U.S. Department of Treasury, calling its sanctioning of the Ethereum mixing service an unprecedented 8 de sept. de 2025 move. This independent action, combined with Coinbase's financial backing, highlights the widespread concern about the implications of the sanctions.
Coinbase's Stance: Supporting Decentralized Innovation
Centralized cryptocurrency exchange Coinbase is funding a lawsuit filed against the US Treasury Department’s Office of Foreign Assets Control (OFAC) by six people 8 de sept. de 2025. This demonstrates Coinbase's commitment to defending the rights of developers and users of decentralized technologies. The outcome of this lawsuit could have a significant impact on the future of cryptocurrency regulation in the United States and beyond.