The New York TimesThe New York Times

Investors sue Treasury Department for blacklisting a crypto platform

By David Yaffe-Bellany

08 Sep 2022 · 2 min read

Editor's Note

Six crypto enthusiasts have sued the US Treasury over its move to sanction a smart contract, essentially a software code. Their legal fees are being paid by crypto-exchange firm Coinbase.

A group of cryptocurrency investors sued the Treasury Department on Thursday to block government sanctions that bar Americans from Tornado Cash, a popular crypto platform that criminals have used to launder virtual currencies.

The lawsuit, filed in federal court in the Western District of Texas, is funded by the cryptocurrency exchange Coinbase, which has clashed with the federal government over its increasingly stringent regulation of digital assets. The suit argues that the Treasury Department overstepped its legal authority by banning Tornado Cash.

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