Key Takeaways

  • Coinbase is funding a lawsuit in opposition to the U.S. Treasury Division over its determination to sanction Twister Money.
  • The exchange’s CEO Brian Armstrong wrote in a weblog publish that the Treasury had “exceeded its authority” and was harming law-abiding U.S. residents.
  • The lawsuit is introduced by six people who beforehand used Twister Money for professional functions.

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Six individuals who used Twister Money for professional causes had their funds frozen after the U.S. Treasury sanctioned the protocol. They’re now submitting a lawsuit, and Coinbase is funding them.

Coinbase Funds Lawsuit Over Twister Money Ban

Coinbase is main the crypto neighborhood’s combat in opposition to the U.S. Treasury’s Twister Money sanctions.

The highest U.S. cryptocurrency exchange published a notice penned by CEO Brian Armstrong Thursday, stating that it might be funding a lawsuit introduced by six individuals difficult the Treasury’s determination to blacklist Twister Money. 

Armstrong argued that the Treasury had “exceeded its authority” granted by Congress when it opted to sanction a chunk of open-source software program, and that it had ignored the know-how’s professional use instances.  

The Treasury added the favored privateness protocol Twister Money to its sanctions listing on August 8 citing its reputation amongst cybercriminals like Lazarus Group. It claimed that it had grow to be a automobile for cash laundering and blamed the workforce for failing to stop illicit exercise. The choice had wide-ranging implications for the crypto area and was met with outcry throughout the neighborhood. A number of entities corresponding to Circle and Infura instantly blacklisted Ethereum addresses that had interacted with the protocol, and lots of outstanding trade figures spoke out in opposition to the ban. Twister Money developer Alexey Pertsev was then arrested in Amsterdam by Netherlands’ Fiscal Info and Investigation Service on August 10; he’s nonetheless sitting in jail regardless of having obtained no formal fees.  

In his letter, Armstrong highlighted three cases of individuals utilizing Twister Money for professional functions previous to the ban. One had used it to anonymously donate cash to Ukraine (one thing Vitalik Buterin individually admitted to following the ban). One other with a big on-line presence used the protocol to keep away from being focused by cybercriminals. One other used it to guard his Ethereum staking enterprise. All three have had their funds frozen because of the sanctions; they represent half of the plaintiffs within the lawsuit Coinbase is bankrolling.

Armstrong likened the Treasury’s determination to “completely shutting down a freeway as a result of robbers used it to flee a criminal offense scene,” arguing that the choice punished harmless individuals. He added that it might have a stifling impact on innovation, as open-source builders would dwell in concern of being held accountable for one thing they don’t have any management over.

Disclaimer: On the time of writing, the writer of this piece owned ETH and a number of other different cryptocurrencies.

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