A US appeals court has ruled that the Treasury Department's sanctions against cryptocurrency mixer Tornado Cash were illegal and an overreach of authority.
In 2022, the Office of Foreign Assets Control (OFAC) found that Tornado Cash, which allows users to obfuscate and anonymize cryptocurrency transactions on the Ethereum (ETH) network, was used by North Korean operatives to launder stolen funds. He was sanctioned on suspicion of
Since then, its developer has faced lengthy legal proceedings and the threat of prison terms.
Now, the New Orleans-based U.S. Fifth Circuit Court of Appeals, led by Judge Don Willett, wrote that OFAC's sanctions failed to properly define the service's statutory “property.”
Judge Willett said that under the International Emergency Economic Powers Act, the president is authorized to “interdict any property in which a foreign country or its nationals have an interest.”
However, Willett said that if the definition of “property” is “possessionable,” Tornado Cash and its immutable smart contracts would not qualify as such, making the sanctions illegal.
The judge also noted that Tornado Cash's smart contracts are “impossible to modify or delete,” so anyone, including North Korean criminals, can continue to use them despite sanctions.
Willett says,
“More importantly, Tornado Cash, as defined by OFAC, does not own the services provided by immutable smart contracts; homeowners own the right to trash removal services, and customers own the right to receive legal While they may own the rights to the service, neither the homeowner nor the customer owns the person or attorney performing the trash removal service. There is a good reason for this, as well. Tornado Cash as does not own immutable smart contracts apart from any rights or interests in the services performed by immutable smart contracts.
Contrary to the Ministry's claims, immutable smart contracts are not services. Therefore, even considering OFAC's regulatory definition, immutable smart contracts are not property, as they are not ownable, are not contracts, or services. ”
Tornado Cash's utility token, TORN, rebounded almost 900% following the ruling.
Never miss a beat – Subscribe to get email alerts delivered straight to your inbox
Check price action
follow me ×Facebook and Telegram
Surf the Daily Hoddle Mix
Disclaimer: The opinions expressed on The Daily Hodl do not constitute investment advice. Investors should perform due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that transfers and transactions are made at your own risk and you are responsible for any losses you may incur. The Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets. The Daily Hodl is also not an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated image: Mid Journey
