A U.S. district court has concluded that the Treasury Department’s sanctions on cryptocurrency mixer Tornado Cash are valid, denying a challenge to the legitimacy of the sanctions brought by six Tornado Cash users.See related article: Privacy vs. security: an international debate on Tornado CashFast factsU.S. District Judge Robert Pitman concluded on Thursday that Tornado Cash can be properly sanctioned as an entity under the International Emergency Economic Powers Act. Pitman ruled that the smart contracts deployed by Tornado Cash count as “property” subject to sanctions under the Office of Foreign Assets Control’s regulatory definitions.In May, six Tornado Cash users challenged the legitimacy of the sanctions against the company. They argued that the government-led sanctions violated users’ First Amendment rights to free speech. The court rejected the claim, finding no evidence the government’s actions had impacted their freedom of speech.Coinbase Global’s chief legal officer Paul Grewal waded into the debate Friday. He wrote on X, formally Twitter, that the cryptocurrency exchange will continue to back the Tornado Cash plaintiffs’ arguments, despite the court’s decision against them.Rights are rarely secured on a path that is always ⬆️ and ➡️. We continue to believe Plaintiffs' challenge to OFAC's Tornado Cash action is right. We’ve always known that Fifth Circuit review is required to resolve these issues, and we continue to support them on appeal. 1/4 pic.twitter.com/Tz8FkFCSf2— paulgrewal.eth (@iampaulgrewal) August 17, 2023The U.S. treasury department claims that cybercriminals use Tornado Cash to launder virtual currency, including to funnel illicit funds to the government of North Korea.@media only screen and (min-width:0px) and (min-height:0px){div[id^=bsa-zone_1681981039491-9_123456]{min-width:300px;min-height:50px}}@media only screen and (min-width:640px) and (min-height:0px){div[id^=bsa-zone_1681981039491-9_123456]{min-width:300px;min-height:250px}}See related article: North Korean hackers move 41,000 ETH stolen from Harmony Bridge attack