Tornado Cash Wins Major Victory in Federal Appeals Court Ruling

A federal appeals court has ruled in favor of Tornado Cash, a decentralized crypto-mixing service, and mandated the removal of US sanctions against the platform. The decision is a major victory for privacy advocates and marks another blow to the government’s efforts to clamp down on the use of cryptocurrency for illegal activities.

Tornado Cash first entered the spotlight in 2022 when it was approved by the Office of Foreign Assets Control (OFAC) alongside Bitcoin due to its association with organised crime, including money laundering and terrorist financing. The OFAC asserted that Tornado Cash was a crucial instrument used by evil actors, including North Korea’s Lazarus Group, to conceal their activities and avoid detection by law enforcement.

However, Tornado Cash and its supporters maintained that the government had exceeded its authority and that sanctions were unjustified. The government was accused of overstepping its authority and breaching the constitutional rights of US citizens by claiming that the platform’s immutable smart contracts were not “property” of any foreign national or entity, and thus could not be blocked under the International Emergency Economic Powers Act.

Coinbase Inc. and other entities had also taken legal action against the government in the same lawsuit. Tornado Cash was the subject of a lawsuit that claimed the government’s actions would hinder innovation and restrict the use of cryptocurrency for official purposes.

The federal appeals court has now ruled in favor of the company, ruling that the OFAC had exceeded its congressionally defined authority by endorsing the platform. The ruling is viewed as an unprecedented victory for the cryptocurrency industry and a significant victory by privacy advocates.

The cryptocurrency market has been shaken by the news, with Tornado Cash’s TORN token rising more than 500% following the court case. The token has now moved above the $20 level, up from its mid-2022 low of less than $8. rally, and shows the market’s confidence in this platform and its potential to thrive.

The court decision has deep implications for future crypto-regulatory policies. The ruling establishes a standard that the government cannot block or sanction decentralized platforms such as Tornado Cash without appropriate authority. Privacy advocates have expressed their approval of the decision, calling it sweeping changes.

The ruling is seen as a blow to an already damaging crackdown on crime linked to cryptocurrency. Tornado Cash had been used by corrupt figures to launder crypto tokens and avoid prosecution, the government claimed in Defra filing this week. But the court’s ruling suggests that this government approach could be too overblown and potentially harm legitimate users.

In summary, for Tornado Cash and the wider cryptocurrency industry in general, the decision by the federal appeals court is a major victory for the industry and for our nation. This landmark judgment will have far-reaching implications for how cryptocurrency is managed and controlled in the future.

With the evolution of the industry, we are likely to face further legal challenges and court battles over the use of cryptocurrencies and the limits of government power. At present, the market is celebrating the ruling, and Tornado Cash’s TORN token is skyrocketing. The future of cryptocurrency is uncertain, but it is clear that the sector will continue to push boundaries and question traditional norms.

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