US Treasury’s OFAC can’t restore Tornado Cash sanctions, judge rules
The US Treasury Department’s Office of Foreign Assets Control (OFAC) cannot restore or reimpose sanctions against Tornado Cash, as ruled by a federal court. Judge Robert Pitman declared OFAC's sanctions unlawful and permanently enjoined the agency from enforcing them. Tornado Cash users, led by Joseph Van Loon, argued that OFAC's addition of the platform's smart contract addresses to its Specially Designated Nationals list was illegal. OFAC had sanctioned Tornado Cash in August 2022 for allegedly laundering crypto linked to North Korean hackers. The agency removed Tornado Cash from the sanctions list on March 21, claiming the issue was moot after a favorable court ruling in January. The court's amended ruling prevents any future sanctions against Tornado Cash. Additionally, the DeFi Education Fund petitioned the White House to drop charges against Tornado Cash co-founder Roman Storm, who faces trial in July for allegedly laundering over $1 billion in crypto. The group criticized the Department of Justice for holding software developers liable for misuse of their code, arguing it could hinder crypto development in the US.
