Us Court Reverses ofac’s Sanctions Against Tornado Cash

In what is being haired as a ‘landmark’ decision by the crypto industry, a US court has revered sanctions levied against Tornado Cash. The controversial crypto mixer is a web3 platform that allows people to shuffle their crypto tokens with some other token from a collective pool of digital currencies. This adds more privacy to crypto transactions, Making them Difential to be tracked or traced. The US Treasury’s Office of Foreign Assets Control (Ofac) Levied Sanctions Against Tornado Cash in 2022 For Enabling Money Launderers to Move Illegal Funds and Evade Law ENFORCEMENG AGENCIES.

On January 21, The US District Court for the Western District of Texas Reversed ofac’s Sanctions Against Tornado Cash. An appeal was filled by six users of tornado cash against ofac’s action that has been ruling. “It is Ordered and Adjudged that the Judgment of the District Court is Reversed, and the Cause is remanded to the District Court for Furter for Furter Proceedings in Accordance with the opinion of this couple ruling Said.

The ofac Reportedly Alleged that Tornado Cash was used by notorious north korean hackers to launder funds amouncing over $ 455 million (roughly Rs. The ofac had claimed that since its launch in 2019, the platform had facilitated the laundering of $ 7 billion (roughly Rs. 60,509 Crore) Until 2022.

Between 2022 and 2025, the blacklisting of Tornado Cash was criticized by the crypto sector, with many arguing that technology of smart contracts s ​​inapplic under existing laws.

Alexey Pertsev, One of the three co-founders of tornado cash, was arrested in Netherlands, following ofac’s sanctions. In May 2024, He Was sentenced To 64 months in prison for money laundering.

Last November, The Fifth Circuit Court in New Orleans overturned The 2022 sanctions against Tornado Cash. The platform’s co-founder roman story is set to face trial on April 14.