Coin Center, a non-profit research and advocacy crypto firm, has filed a lawsuit against the US Treasury Department's after it sanctioned cryptocurrency mixing protocol Tornado Cash.
The document says that the US regulator not only violated the constitutional rights of Tornado Cash users who need it to protect their private associations, but also failed to consider "important aspects of the problem, changed its position without explanation, and defied its own rules on the books."
The US Department of the Treasury's Office of Foreign Assets Control (OFAC) listed crypto mixer Tornado Cash into its sanction list in August this year for laundering over $7 billion worth of crypto since 2019.
The watchdog says the smart contract helped North Korean hackers Lazarus Group launder $455 million of stolen crypto. Moreover, Tornado Cash reportedly helped launder over $96 million from the Harmony bridge heist as well as $7.8 million from the Nomad bridge hack.
