Popular US-based public crypto platform Coinbase exchange jumped in support of Tornado Cash platform via funding to a lawsuit.
Tornado Cash is an Ethereum blockchain-based crypto mixer platform. This platform allows the users to transfer Cryptocurrencies via the platform to mix the transactions with other users, to provide anonymity to the crypto users to maintain privacy with crypto transactions. Many bad actors used the Tornado Cash platform to launder money, so two US government agencies imposed sanctions on this platform.
On 8 September, Nasdaq-listed crypto exchange Coinbase informed the crypto industry via its new blog post that the exchange funded a lawsuit that was initiated by a group of six people against the United States Treasury Department.
Coinbase confirmed that 2 out of 6 people are employees of the Coinbase exchange and they used the Tornado Cash platform in the past for genuine purposes. So basically, through the Lawsuit, these six people are favoring the Crypto mixer platform and challenging the Tornado Cash ban decision of the US government agencies.
The exchange official stated that exchange employees used the Tornado Cash platform to transfer the crypto funds to help the Ukrainian army against Russia’s military invasions.
Paul Grewal, General Counsel at Coinbase exchange said:
“We came to understand that we had employees inside of Coinbase who were relying upon Tornado Cash to do things like donate money to relief efforts in Ukraine and to protect their transactions and salary information from prying eyes.”
Through the blog post, Coinbase official noted that the US treasury department overstepped with its decision to ban the Tornado Cash platform.
Through the Lawsuit, Plaintiff claimed that Tornado Cash is a free speech tool and the Treasury Department infringed on the user’s First Amendment rights by stopping them from Tornado Cash.