A US federal court overturned Treasury sanctions against Tornado Cash, a landmark victory for privacy campaigners. The court determined that the Office of Foreign Assets Control (OFAC) had violated the Administrative Procedure Act.
OFAC cannot reinstate the initial sanctions without following the required procedures. Coinbase's legal chief, Paul Grewal, applauded the ruling on social media. He acknowledged the government's efforts to postpone final judgment and praised the plaintiffs for sticking up for their rights. Tornado Cash's TORN token rose 7% in the 24 hours following the announcement. It's up by 201% last year, trading at $7.93. However, it is still 98% below its all-time high of $437.
The court dismissed the government's claim that the case was moot. It highlighted the recent Supreme Court decision in FBI v. Fikre (2024) to emphasize that continuing proceedings cannot be easily dismissed.
The ruling grants the plaintiffs' petition for summary judgment but refuses the government's. It overturns the agency's decision as unlawful. This ruling may have far-reaching repercussions for cryptocurrency privacy and government control.
