A new court ruling has overturned sanctions imposed by the US government on cryptocurrency mixer Tornado Cash (TORN).
According to a hadith Deposit By the New Orleans-based US Court of Appeals for the Fifth Circuit, the previous decision imposing sanctions on the digital asset tumbler was lifted.
“It is ordered and ordered that the district court’s judgment be vacated, and the case remanded to the United States Court of Appeals for further proceedings in accordance with the opinion of this court.”
Tornado Cash was first sanctioned by the Treasury Department’s Office of Foreign Assets Control (OFAC) after it was deemed a threat to the country’s security as hackers linked to the North Korean government were believed to have used it to clean stolen funds.
Cryptocurrency mixers allow users to obfuscate the source of their digital assets by mixing them with other coins from different sources and return the amount entered to each user.
In November, the court ruled that OFAC sanctions failed to properly define “ownership” in the sanctions it imposed. He went on to say that if “ownership” meant “the ability to own,” then Tornado Cash and its smart contracts would not be of quality, making the penalties illegal.
“Contrary to the Department’s arguments, immutable smart contracts are not services. Therefore, even when we take into account OFAC’s regulatory definitions, immutable smart contracts are not property because they are not propertyable, they are not contracts, and they are not services.”
News of the historic ruling caused TORN to spark a massive rally, going from a price of $8.08 on January 21 to a peak of $25.28, a 212% gain. The token has since corrected and is moving for $19.57 at the time of writing.
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