Court prohibits US Treasury to punish Tornado Cash again

By Hannah Pérez

Cryptocurrency privacy defenders celebrate New Tornado Cash. A Federal Court in the USA. Restricts the OFAC to implement sanctions. The token turn rises 7%.

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Federal Court in the USA. Restricts the Ofac to restore the sanctions to Tornado Cash.
The ruling occurs after the Treasury department lifted the sanctions in March.
A new victory for cryptocurrency privacy defenders.
The native tornado tornado token rises 7%.

A new victory for the defenders of cryptocurrency privacy now that a court in the United States has restricted the Treasury Department of imposing new sanctions against Tornado cash.

In a ruling on Monday, a federal court in the United States revoked its previous decision that supports the sanctions imposed by the Office of Foreign Assets Control (OFAC) of the Treasury against the cryptocurrency mixer Tornado cash, preventing original sanctioning measures from being restored against the protocol in the future.

Judge Robert Pitman, from the Court for the West District of Texas, updated and ended the amendments, ruling that the sanctions were “illegal“And placing an order that forces the treasure to be”permanently ordered to enforce it“

“The OFAC now is legally prohibited to restore the original sanctions“, Wrote the legal director of CoinbasePaul Grewal, who initially shared the news in X, celebrating the Court’s decision.

“Congratulations to the brave plaintiffs who had the courage to face their own government to defend their rights“He applauded on social networks.

Congratulations to the Brave Plaintiffs Who Had the Courage to Stand Up To Their Government for Their Rights Under Law. We celebrate a lot of vapid nanse in Our Culture; You are the Less Famous Heroes Who Desserve Our Attention and Gratitude. 23

– Paulgrewal.eth (@iampaulgrewal) April 28, 2025

Without new sanctions for tornado cash

The case is derived from a historical sanction imposed for the first time by the government agency three years ago.

In mid -2022, the OFAC sanctioned Tornado cash Alleging that it was a key tool used by cyber criminals, including the hacker group Lazarusthat the US government assures is funded by the North Korean regime.

The sanction was the first time inclusion of intelligent contracts in the list of nationally designated nationals (SDN) of the United States Treasury. Likewise, a series of cryptocurrency addresses were added to the blacklist in a sanctioning action that prevented people and companies in the United States from interacting with Tornado and its directions.

The measure was subject to a lot of controversy, especially due to decentralized and open source nature Tornado casha network -based service Blockchain of Ethereum which facilitates users to mask addresses and obfuscate the origin of the funds.

The Department of the Treasury officially lifted the sanctions last month, followed by a ruling of a Federal Court of Appeals in November 2024, which ruled that the agency had exceeded its authority and that the OFAC could not sanction the intelligent contracts of the mixer because they were not the “”property“Of no foreign citizen.

This week’s ruling explicitly rejected the government’s attempt to avoid a final judgment after the sanctions to voluntarily lift Tornado cash In March.

Torn rises 7% in the middle of the precedent

This last development represents the second part of the proof of the expiration exception of the court, which allowed the case to reach a final sentence, according to the news media Decrypt.

An “expiration exception test” helps courts to decide whether they must pronounce on the cases, even after the issues seem resolved, adds that publication.

The decision occurs three weeks after the Department of Justice announced that it would stop presenting criminal charges against cryptocurrency mixing services, unless they are involved in criminal activities.

The recent measures of US federal and justice agencies establish a precedent on how protocols are treated Blockchain Under the laws of the United States, which could change the way in which regulators approach decentralized finance services (DEFI).

Turn, the native token of Tornado casha little more than 7% rose in 24 hours after the news to reach a local cap of USD $ 8. At the time of editing, its price is USD $ 7.86, according to data from Coinmarketcap.

Hannah Estefanía Pérez / Diariobitcoin

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