A recent court ruling has been a landmark moment for crypto investors and users of privacy technologies, changing the approach to sanctions and driving a substantial increase in TORN.
Core Events
On June 25th, the US Fifth Circuit Court of Appeals ruled that OFAC had overstepped its authority by sanctioning Tornado Cash smart contracts. The ruling established that the "immutable and uncontrollable" nature of these contracts does not fit traditional definitions of "property," resulting in a 9.6x increase in the TORN token within 24 hours, marking a historical record.
Ongoing Controversies
Despite this significant legal breakthrough, Tornado Cash developer Roman Storm faces three criminal charges, including money laundering, with his trial postponed until next April. Another developer, Alexey Pertsev, received a 64-month prison sentence in the Netherlands. Legal defense costs have reached $500,000 monthly, prompting community members like Vitalik Buterin to initiate funding donations.
Industry Impact
The ruling establishes that "sanctions should target malicious actors, not the tools themselves," providing crucial legal protection for open-source protocols. Tornado Cash deposits jumped dramatically from $1.27 billion in 2023 to $1.9 billion in the first half of 2025, representing an impressive 50% increase.
This legal victory paves the way for new opportunities in cryptocurrency privacy, emphasizing the importance of respecting user rights and protecting their data.
