In what could be a game-changer for privacy-focused platforms, a Texas court has reversed a decision against crypto mixing service Tornado Cash.
The decision, issued by the US District Court for the Western District of Texas on January 21, reverses the initial sanctions placed by the US Treasury’s Office of Foreign Assets Control (OFAC) in 2022.
OFAC originally sanctioned Tornado Cash, citing its alleged role in enabling North Korea’s Lazarus Group to launder over $455 million in stolen crypto assets.
Tornado Cash Developer Jailed Amid Crypto Privacy Debate
This crackdown had serious legal consequences, including the arrest and conviction of the protocol’s developer, Alexey Pertsev. Dutch authorities found him guilty of laundering $1.2 billion through Tornado Cash, sentencing him to over five years in prison. Despite the recent US court ruling, Pertsev remains behind bars on money laundering charges.
LATEST: $TORN skyrocketed as high as $21.91 today as the Texas District Court officially ordered sanctions against @TornadoCash to be reversed.
It’s currently up 116.2%, trading at $17.04
pic.twitter.com/XYhMviEJKY
— CoinGecko (@coingecko) January 22, 2025
While Tornado Cash supporters view the ruling as a step toward fairer treatment of decentralized technologies, the legal challenges are far from over. Courts have maintained that developers bear responsibility for preventing misuse, rejecting Pertsev’s argument that he could not control how users leveraged the platform. As the case continues, the broader crypto community is watching closely for potential regulatory shifts that could impact privacy-focused projects worldwide.
Trump Hits the Ground Running
The news comes two days after Donald Trump’s return to the White House. Since then, the new president has made some key regulatory appointments as well as an executive pardon for the Silk Road founder, Ross Ulbricht.
JUST IN: Silk Road Founder Ross Ulbricht seen out of prison following pardon from President Trump. pic.twitter.com/90zsIL4Ve2
— Watcher.Guru (@WatcherGuru) January 22, 2025
Furthermore, Trump’s first day in office began with Gary Gensler leaving his role as SEC chair and Mark Uyeda being appointed to take his role. Uyeda has already hit the ground running with the appointment of a crypto task force. The group will work towards creating a better regulatory environment for crypto platforms.
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The post Texas Court Reverses Tornado Cash Sanctions appeared first on Altcoin Buzz.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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