Tornado Cash is officially secure from US sanctions after a district court on Monday.
The Treasury Department’s Office of Foreign Asset Control (OFAC) removed Tornado Cash from his sanction list in March, several months after an appeal court gave up that the agency had “exceeded its congress defined authority” by sanctioning Crypto Mixing Service’s Smart Contracts back in 2022.
The way ofc de-noted Tornado Cash, and the subsequent messages and proposals that its lawyers filed to court in March apparently left the Wiggle Room for the Agency to put the mixing service back on its non-flying list in the future, a federal judge said. Treasury lawyers claimed that due to the fact that ofac had revoked sanctions against Tornado contains in the final judgment of the court (but after the decisive decision of the appeal), the question was bad.
But to the six plaintiffs in Van Loon vs. Treasury – All users of Tornado Cash – The problem was actually not Moot. In an archiving on April 21, their attorneys ofc’s response blasted the fifth circuit’s decision, called it “an investigation in chaos” and accuses them of “wav[ing] The mootness flag “in a last ditch insert to” avoid a negative judgment. “
“Enough is enough,” lawyers told the plaintiff the judge. “It’s time for this court to do what the fifth circuit ordered months ago … The defendant’s designation must be kept illegally and set aside.”
In his strictly formulated decision yesterday, US district judge Robert Pitman of the Western District Texas said that the case did not disagree, and sit with the plaintiffs, stating that Ofac’s designation of Tornado Cash was illegal, and the agency is therefore permanently connected from enforcing sanctions against it.
“[OFAC does] not suggest that they will not sanction tornado cash again and they may try to ‘reintroduce exactly the same [designation] In the future ‘, “Pitman wrote.” Instead of acknowledging that the fifth circuit’s order required the delisting of Tornado contains, the defendants state that they were practicing their ‘estimates’ by deciding to make it based on more general political and legal considerations. “
The US Department of Justice (DOJ) is currently pursuing criminal charges against two tornado -contant developers, novel Storm and Roman Semenov, who in 2023 was indicted for conspiracy to commit money laundering, conspiracy to serve an illegal money -transmitter and conspiracy to violate US sanctions. Semenov remains on OFAC’s sanction list.
Earlier this month, US Deputy Attorney Todd Blanche DOJ staff sent a memo that informed them to narrow down crypto-related enforcement priorities. The staff were asked to no longer pursue cases against crypto exchanges, mixing services or offline wallets “for the actions of their end user or ignorant violations of rules.” Blanche ordered any ongoing investigations that did not comply with these new priorities to be dropped, and said his office would work with DOJ’s criminal department to decide how to proceed with any running lawsuits that did not meet the new enforcement standards.
The memo has already made waves in running crypto cases. Prosecutors in the case against the two founders of Crypto Mixer Samorai-Tevebog filed a joint request to defense attorneys on Monday and asked the court for a 16-day extension in various deadlines when deciding whether to make charges under the auspices of Blanche’s memo.
A number of prominent figures in the crypto industry also signed a letter from the Defi Education Fund to the White House and Crypto Czar David Sacks on Monday and called on US President Donald Trump to intervene in the case to “interrupt the Biden-Era’s Department of Justice’s Lawless campaign to criminalize opening softening software development” and the paralysis of the Storm.
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