Court overturns sanctions against Tornado Cash

In 2022, the confidential project Tornado Cash was sanctioned, accused of being used for money laundering. It was also linked to hacker groups. The developer, Alexey Pertsev, was convicted, and assets worth about $2 million were confiscated.

Key argument of the defense

In November 2023, the crypto-mixer's defenders filed an appeal, arguing that smart contracts are strings of code and cannot be considered property subject to sanctions.

The district court supported this position, pointing out that existing legislation does not align with modern technologies. Thus, the Treasury Department exceeded its authority, and the sanctions were deemed unlawful.

Market reaction and asset growth

The court's decision caused a significant stir in the cryptocurrency industry, becoming a critical precedent for protecting the interests of developers and users of decentralized solutions.

Following this news, the price of the project's TORN token surged sharply, rising by 376% over the week and reaching $40. According to TradingView, this price jump is directly tied to the market's positive reaction to the developments.

Going forward, Congress may amend legislation to account for the specifics of digital technologies. For now, crypto companies and developers have received partial support for their positions.