A US appeals court has overturned sanctions imposed on the cryptocurrency mixer Tornado Cash. This decision marks a significant win for cryptocurrency advocates and has sent the TORN token price soaring.
Sanctions Revoked
The US Court of Appeals for the Fifth Circuit reversed a lower court’s ruling that had sanctioned Tornado Cash. The court’s order stated that the previous decision was overturned and the case sent back to the lower court for further proceedings.
The Case Against Tornado Cash
The Treasury Department’s Office of Foreign Asset Control (OFAC) initially sanctioned Tornado Cash, claiming it was a national security threat because North Korean hackers allegedly used it to launder stolen funds. Tornado Cash is a “crypto mixer,” a service that obscures the origin of cryptocurrency transactions.
The Court’s Reasoning
The court’s decision hinged on the definition of “property” within the context of the sanctions. The court argued that OFAC’s definition was flawed. The judge stated that if “property” means something “capable of being owned,” then Tornado Cash’s smart contracts don’t qualify, rendering the sanctions illegal. The court emphasized that these immutable smart contracts are not services or ownable assets.
Market Reaction
News of the court’s decision triggered a dramatic price surge for the TORN token. The price jumped from around $8.08 to a high of $25.28—a 212% increase—before settling back to around $19.57 at the time of writing.
Disclaimer:
This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before investing in cryptocurrencies. Investing in crypto carries significant risk, and you could lose money.
