A federal court has upheld the Treasury Department’s authority to impose sanctions on the cryptocurrency mixer Tornado Cash, rejecting a legal challenge brought by Tornado Cash users.

U.S. District Judge Robert Pitman sided with the government on all of its claims and granted summary judgment in the case, affirming that the Treasury’s Office of Foreign Assets Control’s (OFAC) is entitled to cite Tornado Cash under sanctions statutes.

The summary judgment requested by the plaintiffs—six Tornado Cash users—was simultaneously denied.

The Tornado Cash users had said the government’s action was unlawful as it violated the First Amendment, arguing that they were denied the ability to engage in “socially valuable speech” because they would have used Tornado Cash “to make donations to important political and social causes.” Pitman disagreed, writing that the plaintiffs “have not shown that the government’s action in any way implicates the First Amendment.”

The six users are identified in the ruling as Joseph Van Loon, Tyler Almeida, Alexander Fisher, Preston Van Loon, Kevin Vitale, and Nate Welch.

The ruling stems from a lawsuit filed by the six users after the Treasury

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Author: Decrypt AI, Edited by Ryan Ozawa

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