Since Aug. 8, U.S. persons and entities have been prohibited from interacting with the sanctioned Tornado Cash smart contract addresses, blockchain or business-wise, under the threat of criminal or civil penalties for non-compliance. The plaintiffs seek to annul the designation based on three arguments. First, they argue Tornado Cash does not meet the definition of a property, a foreign country, or a national thereof, nor a person and therefore cannot be added to the SDN list.
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Source: Cryptocurrency - investing.com