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Tornado Cash Secures Legal Victory Against U.S. Sanctions
Tornado Cash Secures Legal Victory Against U.S. Sanctions
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A Texas district court has ruled that Tornado Cash cannot be re-sanctioned by the U.S. Treasury Department’s Office of Foreign Asset Control (OFAC). The decision solidifies the crypto mixer’s protection after OFAC removed it from its sanctions list in March, following an appeals court ruling that the agency overstepped its authority by targeting Tornado Cash’s smart contracts in 2022.
While OFAC’s delisting initially left room for potential future sanctions, the district court’s judgment has now closed that loophole. The case highlights ongoing tensions between regulatory overreach and decentralized finance protocols, with implications for privacy-focused tools in the crypto ecosystem.
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