Sanctions on cryptomixer Tornado Cash have been upheld by a US court after the judge ruled that, among other things, First Amendment rights do not apply to the case.
Tornado Cash was blacklisted by the Treasury Department in August 2022 for allegedly posing a threat to national security, in part because it allegedly helped groups such as North Korean hackers Lazarus launder stolen funds.
Alexey Pertsev, a developer of Tornado Cash, was arrested by Dutch authorities and imprisoned in Amsterdam and held without trial until April 2023.
Now a US court has dismissed a challenge to the sanctions of six Tornado Cash users, upholding the ban on the Ethereum-based cryptomixer.
In the ruling, Judge Robert Pitman of the U.S. District Court for the Western District of Texas, Austin Division, said the plaintiffs’ arguments of constitutional violations were not strong enough.
Plaintiffs are also filing a First Amendment claim alleging that Tornado Cash’s nomination fails
constitutional oversight because it is too broad and not narrowly tailored.
The court will order the government in preliminary relief proceedings and dismiss these claims. Plaintiffs have not shown that the action of the administration in any way implies the First Amendment.”
Pitman expressed concern that Tornado Cash was helping people donate money to important political causes without fear of prosecution.
The judge said the First Amendment protects Americans’ right to donate money to social causes of their choice, but does not protect the right to do so through “a particular bank or service of their choice, and plaintiffs are not making any case that claims the contrary”. .”
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