Coinbase, the largest U.S.-based cryptocurrency exchange, is helping organize and pay the costs of a lawsuit against the U.S. Treasury Department over its sanctions on Tornado Cash.

Six individuals, including two Coinbase employees, filed the lawsuit on Thursday, which claims that the Treasury Department overstepped its authority in barring all U.S. citizens from interacting with the privacy tool.

The six plaintiffs are Coinbase employees Tyler Almeida and Nate Welch, former Amazon engineer Joseph Van Loon, Ethereum proponent and angel investor Alex Fisher, GridPlus engineer Kevin Vitale, and Prysmatic Labs co-founder Preston Van Loon.

Coinbase, the cryptocurrency mixer that works on the Ethereum blockchain, is backing the efforts as well as funding the costs (legal fees) associated with the lawsuit against the Treasury Department over its decision to sanction a program that enabled users to hide their transaction history, increasing privacy on what is otherwise an open and transparent blockchain.

All six plaintiffs stated that in the past, they used Tornado Cash for legitimate purposes and have been financially damaged by the sanctions.

«None of the plaintiffs is a terrorist or a criminal. None support terrorism or illegal activity. None launder money. Each is an American who simply wants to engage in entirely lawful activity in private,» lawyers for the Tornado Cash users said in the complaint, filed in the U.S. District Court for the Western District of Texas.

The lawsuit argues that Treasury overstepped its authority by sanctioning software, rather than a person or an entity. It then claims the department infringed on the plaintiffs' First Amendment rights by prohibiting them from using a tool that enabled them