Trusted

US Government Drops Tornado Cash Appeal, Boosting TORN’s Value

2 mins
Updated by Landon Manning
Join our Trading Community on Telegram

In Brief

  • The US government agreed to drop its appeal against Coin Center, protecting Tornado Cash from future sanctions.
  • Tornado Cash’s TORN asset saw a notable 4% spike following the announcement of the legal victory.
  • Despite the win, the platform's future is uncertain, with ongoing legal challenges facing key leaders.
  • promo

The US government agreed to drop Coin Center’s appeal concerning Tornado Cash, guaranteeing future protection from sanctions. The platform’s TORN asset spiked after the announcement.

Still, it’s a little unclear what the platform’s next steps are. Several of its leaders face ongoing legal battles, even if the decentralized software remains operational.

Sanctions Protection for Tornado Cash

Tornado Cash, a popular decentralized crypto mixer, has been engaged in various legal battles for multiple years now. Although the DOJ is still actively prosecuting co-founder Roman Storm, blocking a string of his proposed trial witnesses, the firm won a breakthrough today. After much back and forth, the US government is dropping its appeal against the company:

Coin Center, a blockchain advocacy group, has been suing the US Treasury on behalf of Tornado Cash. The Treasury imposed sanctions on the platform for allegedly aiding North Korean hacking efforts, but crypto’s political climate has shifted. These sanctions were removed in November and have since become the centerpoint of an ongoing squabble.

According to a report from Bloomberg Law, the crux of the issue regards a Texas District Court’s ruling against Tornado Cash sanctions. Essentially, Coin Center was set on legally ensuring that the US government couldn’t use the same pretext to sanction the firm again.

After all, crypto is enjoying a good moment, but fortune can be fickle. Watchdogs have already raised the alarm that the US could sanction Tornado Cash again, prompting Coin Center’s lawsuit. Its aim has been successful, causing the TORN asset to rise over 4% today on top of a brief spike:

Tornado Cash (TORN) Price Performance
Tornado Cash (TORN) Price Performance. Source: CoinGecko

Nonetheless, it’s a little unclear where Tornado Cash will go from here. Although the platform is still operational, several of its main leaders face continuing legal battles. It’s a very good sign that the US sanctions aren’t coming back for the foreseeable future, but the platform has a long way to go to restore its former position.

Best crypto platforms in Europe
Best crypto platforms in Europe
Best crypto platforms in Europe

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

image-10-1.png
Landon Manning
Landon Manning is a Journalist at BeInCrypto, covering a wide range of topics, including international regulation, blockchain technology, market analysis, and Bitcoin. Previously, Landon spent six years as a writer with Bitcoin Magazine and co-authored a Bitcoin maximalist newsletter with 30,000 subscribers. Landon holds a Bachelor of Arts in Philosophy from Sewanee: The University of the South.
READ FULL BIO
Sponsored
Sponsored