US Court Reverses OFAC Sanctions on Tornado Cash
The US court has reversed the sanctions imposed on the Tornado Cash crypto mixing protocol by the OFAC in August 2022. The initial sanctions were based on allegations that Tornado Cash facilitated over $455 million in money laundering for the North Korean Lazarus Group.
- In May, developer Alexey Pertsev was convicted of laundering $1.2 billion and sentenced to five years and four months.
- The recent court filing states: "The judgment of the district court is reversed," indicating a potential regulatory shift.
- Pertsev remains in custody on related charges despite the sanction reversal.
- Six Tornado Cash users have appealed against OFAC, arguing the agency exceeded its authority and asserting blockchain transactions are traceable.
- The overturning of sanctions may signal a move towards more favorable regulations for privacy-focused technologies.