"We have no issue with the Treasury sanctioning bad actors, and we take a hard stance against unlawful behaviour," He further added,
Tornado Cash and other mixing services disguise anonymous but easily trackable cryptographic transactions. The Treasury Department claimed that North Korean hackers and other criminal actors had utilized this business to launder more than $7 billion in digital currency over the last three years. But occasionally, valid privacy concerns lead people to employ mixing services. To protect his address from Russian hacking gangs, one plaintiff, a senior security risk analyst at Coinbase, used the service to anonymize donations to Ukraine. Another was worried about the safety of his family.
Treasury took a novel step with the sanctions to target open source software rather than a company or individual. Crypto enthusiasts have suggested that the action was excessive, that it established a new legal standard, and that it would negatively affect the IT sector.
Coinbase is the biggest cryptocurrency exchange in the United States by trading volume. While dealing with a recent flurry of Securities and Exchange Commission (SEC) investigations, Coinbase has publicly pushed for crypto reforms in Washington. Coinbase recently got asked for information by the SEC over the listing of cryptocurrencies that the agency suspects may have been unregistered securities. The SEC is also investigating its staking cryptocurrency rewards scheme.