The recent decision by the U.S. Appeals Court marks the end of the legal battle between Coin Center and the U.S. Department of the Treasury regarding Tornado Cash, which has been removed from the OFAC sanctions list.
Overview of Coin Center's Case Against OFAC
Coin Center, a crypto advocacy group, filed a lawsuit against the U.S. Department of the Treasury (OFAC) concerning the sanctions imposed on Tornado Cash, a service for anonymous cryptocurrency transactions. The case was initiated after Tornado Cash was added to the sanctions list over allegations of facilitating hacks carried out by North Korean hackers. However, two months ago, OFAC decided to remove Tornado Cash from the list.
Court Decision Reaction and Consequences
Following the Appeals Court's decision, Coin Center remarked that this indicates the government does not want to defend its position in the case. Coin Center's executive director, Peter Van Valkenburgh, stated that the government's position was 'dangerously overbroad,' and referencing the likelihood of a loss, the government dropped its defense. After the news broke, the price of the TORN token surged by 14%, reaching a high of $10.50, representing a significant profit for the day.
Situation with Tornado Cash Founder Roman Storm
Roman Storm, co-founder of Tornado Cash, is preparing for a court hearing on July 14, where he faces serious money laundering charges. However, he is not directly responsible for the illicit activities. While prosecutors allege that Storm and his colleagues laundered around $1 billion, most of these funds were associated with the Lazarus group, responsible for cyberattacks in North Korea. Despite the controversial charges, Storm is receiving support from organizations such as Coinbase and the Ethereum Foundation.
The Appeals Court's decision in favor of Coin Center and the lifting of sanctions against Tornado Cash highlight the volatility of the legal environment surrounding cryptocurrencies. The future of such services remains uncertain, as potential changes in government could lead to a reevaluation of current norms and regulations.
