Michaela
U.S. District Judge Robert Pitman of the Western District of Texas has sided with Tornado Cash, a widely used crypto mixer, against the Office of Foreign Assets Control (OFAC. The court’s decision now legally bars OFAC from reinstating the original sanctions.
Coinbase Chief Legal Officer Paul Grewal shared excerpts of the court decision on X, confirming that OFAC is now legally barred from reimposing its original sanctions.
“Congratulations to the brave plaintiffs who had the courage to stand up to their own government for their rights under law. We celebrate so much vapid nonsense in our culture; these are the less famous heroes who deserve our attention and gratitude,” Grewal wrote. “We appreciate the Court’s careful consideration,” he added.
Tornado Cash landed on the U.S. Treasury’s Specially Designated Nationals and Blocked Persons (SDN) list in August 2022, after OFAC accused the platform of helping launder over $7 billion in cryptocurrency. Officials specifically cited the involvement of North Korea’s state-sponsored Lazarus Group, which has been linked to major cyberattacks and crypto thefts worldwide.
Despite the sanctions, a group of Tornado Cash users led by Joseph Van Loon pushed back against the Department of Treasury, arguing it had overstepped its legal authority. The plaintiffs claimed that Tornado Cash could not be treated as a person and that its immutable smart contracts do not constitute property under U.S. law.
The ruling in favor of Tornado Cash marks a pivotal moment in the ongoing debate over the regulation of decentralized technologies. This legal victory has far-reaching implications, not only for Tornado Cash but for the broader crypto ecosystem, especially web3 developers who have long faced regulatory uncertainty.
With the U.S. Treasury’s authority challenged, the case sets an important precedent that could influence future legal battles over privacy, security, and the scope of government intervention in the decentralized space. As privacy advocates push for more protections, this case may also spark renewed conversations about the role of decentralization in promoting financial sovereignty.
Ultimately, the case could shape how decentralized platforms operate under U.S. law, with profound implications for the global blockchain ecosystem.
Read More
- Tornado Cash Co-Founder Slams DOJ Charges as Attack on Privacy
- US Court Overturns Tornado Cash Sanctions in Major Crypto Privacy Win
- Vitalik Buterin Donates $170K to Tornado Cash Developers’ Legal Defense
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
