Coin Center and the US Treasury have concluded a years-long legal battle regarding the sanctions imposed on the crypto mixer Tornado Cash. Court rulings have significantly impacted cryptocurrency regulation in the country.
End of Legal Proceedings
On June 7, Coin Center director Peter Van Valkenburgh announced that the legal fight had come to an end after the Eleventh Circuit Court of Appeals officially dismissed the case. "This is the official end to our court battle over the statutory authority behind the TC sanctions. The government was not interested in moving forward and defending their dangerously overbroad interpretation of sanctions laws," he noted.
Sanctions Against Tornado Cash
The sanctions against Tornado Cash were imposed in 2022, based on claims that the platform aided illegal financial activities, including laundering millions by the North Korea-linked hacker group Lazarus. However, earlier this year, a Texas court ordered OFAC to lift the sanctions, and the government chose not to appeal that decision.
Future of Tornado Cash and its Founders
Despite the conclusion of Coin Center's legal battle, Tornado Cash's legal troubles are far from over. Roman Storm, one of the founders, has been indicted by the US Department of Justice on similar charges and is set to stand trial next week. Meanwhile, fellow co-founder Alexey Pertsev was convicted in May 2024 and sentenced to 64 months in prison but was recently released while remaining under electronic monitoring at home.
The legal events surrounding Tornado Cash reflect the broader challenges faced by the crypto industry, highlighting the importance of balancing regulation with user rights.
