Tornado Cash wins in court, and TORN soars!

A U.S. Appeals Court Overturns Some Sanctions Against Tornado Cash: OFAC “Exceeded Its Authority”

A (Partial) Victory for Tornado Cash
Many will recall Tornado Cash and its legal troubles. The well-known mixer had been targeted by U.S. authorities due to various illegal activities carried out through it. However, the Office of Foreign Assets Control (OFAC), which handled the case, seems to have overstepped its bounds.

A U.S. court declared this just hours ago, acknowledging errors in OFAC's legal proceedings and overturning some sanctions.

Specifically, the court determined that Tornado Cash’s smart contracts were not "property" of the platform. As a result, the regulatory authority lacked the grounds to sanction it under this premise. Furthermore, the application of rules under the International Emergency Economic Powers Act (IEEPA) and the North Korea Sanctions and Policy Enhancement Act was deemed inconsistent.

“The smart contracts at issue in this appeal cannot be owned,” reads the court’s ruling. “Consequently, no one can be ‘prohibited’ from using Tornado Cash’s pool smart contracts.”

The Community's Reaction
The victory is primarily thanks to six American Tornado Cash users, who first appealed, arguing that the sanctions violated the Administrative Procedure Act. U.S. citizens will now be allowed to use the protocol again.

However, Tornado Cash’s troubles are far from over. OFAC still holds sway over the protocol, which remains accused of facilitating illicit activities such as money laundering, including by foreign actors like North Korea. The appeals court even suggested that Congress might need to address the issue further.

Meanwhile, the crypto community seems to have welcomed the news positively, as the TORN token saw a staggering 400% increase in value over the past 24 hours.

What’s your take on this? Share your thoughts in the comments! 🚀⚡ by Gue22