title: Coinbase CLO Paul Grewal Criticizes US Treasury's Handling of Tornado Cash's Delisting

Coinbase's Chief Legal Officer (CLO), Paul Grewal, has sharply criticized the US Treasury's handling of Tornado Cash's delisting from the Specially Designated Nationals (SDN) list.

Coinbase's Chief Legal Officer (CLO), Paul Grewal, has sharply criticized the US Treasury’s handling of Tornado Cash’s delisting from the Specially Designated Nationals (SDN) list.

After the decision to remove sanctions on the crypto mixer, Grewal raised concerns about the Treasury’s efforts to avoid a final court ruling on the matter, saying that the process is imperfect.

Power does not recede voluntarily. It's gasps and it gasps until it no longer can. @USTreasury filed yet another late Friday pleading against Tornado Cash. After grudgingly delisting TC, they now claim they've mooted any need for a final court judgment. But that's not the law,

Grewal posted on X to challenge the Treasury’s legal basis for filing which sought to avoid the lawsuit since the matter had become insignificant. According to Grewal such motions should be filed only when defendants demonstrate the situation will not occur again.

He pointed out that by not securing a final court ruling, the Treasury could potentially reinstate sanctions on Tornado Cash in the future.

Tornado Cash found itself in a legal dispute following US authorities adding it to the SDN list because they accused the mixer of helping North Korean Lazarus Group launder $500 million worth of stolen digital assets.

Tornado Cash users successfully challenged the sanctions through court victories despite US authorities placing the mixer on the SDN list. According to Grewal the court established that Tornado Cash smart contracts do not meet the requirements for property classification under US law.

Coinbase together with the Ethereum Foundation provide legal support to Tornado Cash lead developer Alexey Pertsev. This ongoing battle showcases the complexities of crypto regulation and its impact on the legal landscape.

Also Read: Coinbase to Delist Floki, Turbo, Giga in New York from April