Crypto Group Sues US Treasury, Yellen Over Code Sanctions

The US Treasury Department faces a second lawsuit over its August decision to sanction Tornado Cash, a crypto-mixing service that obscures sources of coin transactions.

The lawsuit filed Wednesday claims the Treasury’s sanctions overstepped its authority and punishes US cryptocurrency investors. A crypto advocacy group, Coin Center, and a group of users who relied on Tornado Cash for normal privacy reasons named Janet Yellen, secretary of the Treasury, among the defendants.

In August, the Treasury’s Office of Foreign Assets Control accused Tornado of laundering more than $7 billion of cryptocurrencies since its creation in 2019, including some virtual currencies ...