Texas Judge Rules Tornado Cash Cannot Be Sanctioned Again
Tornado Cash is no longer subject to U.S. sanctions following a district court ruling. Key points include:
- The Treasury's Office of Foreign Asset Control (OFAC) removed Tornado Cash from its sanctions list in March.
- This followed an appeals court decision that OFAC overstepped its authority by sanctioning the service's smart contracts in 2022.
- A federal judge ruled that the case was not moot, siding with plaintiffs who argued against OFAC's actions.
- Judge Robert Pitman stated that OFAC's designation of Tornado Cash was unlawful and permanently enjoined the agency from enforcing sanctions against it.
- The DOJ continues to pursue criminal charges against two Tornado Cash developers for money laundering and other offenses.
- U.S. Deputy Attorney General Todd Blanche has narrowed crypto-related enforcement priorities, instructing staff to avoid pursuing cases against mixing services for user acts.
- This shift has impacted ongoing investigations, including those against the founders of Samourai Wallet.
- A letter signed by prominent figures urged intervention from President Trump to halt prosecutions related to open-source development.