{"id":9088,"date":"2025-01-22T15:31:16","date_gmt":"2025-01-22T15:31:16","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=9088"},"modified":"2025-01-22T15:31:16","modified_gmt":"2025-01-22T15:31:16","slug":"texas-court-overturns-tornado-cash-sanctions-says-cannot-punish-technology-torn-surges-by-180","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=9088","title":{"rendered":"Texas Court Overturns Tornado Cash Sanctions, Says Cannot Punish Technology: TORN Surges By 180%"},"content":{"rendered":"
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The US Fifth Circuit Court of Appeals has overturned sanctions and ruled in the favour of Tornado Cash. In a win for crypto companies worldwide and a positive shift towards crypto-friendly regulation, the court concluded that the Treasury Department\u2019s Office of Foreign Assets Control (OFAC) exceeded its statutory authority under the International Emergency Economic Powers Act (IEEPA).<\/span><\/p>\n

Judge Don Willett noted that while OFAC has valid concerns about unlawful activity, its jurisdiction is restricted to punishing \u201cproperty,\u201d not technology itself.\u00a0<\/span><\/p>\n

Following the ruling, US citizens can legally use Tornado cash. The market reacted positively to this and the company\u2019s native token (TORN) surged by over 180% to $22.<\/span><\/p>\n

\"TORN<\/p>\n

Explore: Tornado Cash Triumph: You Can\u2019t Sanction Smart Contracts, Court Declares, TORN Rallies 1,300%<\/a><\/strong><\/p>\n

The Controversial Sanctions<\/h2>\n

OFAC had blacklisted the company for its role in laundering virtual currency for malicious cyber actors. For example, a North Korea-linked hacking group that used Tornado Cash to launder the proceeds of cybercrimes.\u00a0<\/span><\/p>\n

However, it was noted that while Tornado has legitimate applications for enhancing privacy, it has also been exploited by malicious actors. <\/span><\/p>\n

According to the court ruling, by adding Tornado Cash to the list of Specially Designated National and Blocked Persons (SDN), OFAC imposed an across-the-board prohibition against any dealings with Tornado Cash \u201cproperty.\u201d OFAC defined this to include open-source computer code known as \u201csmart contracts.\u201d<\/span><\/p>\n

The sanctions targeted 38 Ethereum smart contract addresses associated with the platform. This effectively banned US entities from interacting with it.\u00a0<\/span><\/p>\n

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District Court officially ordered to reverse sanctions against Tornado Cash pic.twitter.com\/gmWRbphU15<\/a><\/p>\n

\u2014 L0la L33tz (@L0laL33tz) January 22, 2025<\/a><\/p>\n<\/blockquote>\n