• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Court overturns US sanctions against cryptocurrency mixer Tornado Cash

by November 27, 2024
written by November 27, 2024

By Nate Raymond (NS:RYMD)

(Reuters) – The U.S. Treasury Department acted outside its authority when it sanctioned cryptocurrency mixer Tornado Cash in 2022 and accused it of helping launder over $7 billion for North Korean hackers and other malicious cyber actors, a U.S. appeals court ruled.

A three-judge panel of the New Orleans-based 5th U.S. Circuit Court of Appeals on Tuesday sided with six users of Tornado Cash who with the financial backing of the cryptocurrency exchange Coinbase (NASDAQ:COIN) filed a lawsuit challenging the sanctions.

Cryptocurrency mixers are anonymized software tools that allow users to conceal the source or owner of digital assets. The sanctions had been imposed by the Treasury Department’s Office of Foreign Assets Control pursuant to the International Emergency Economic Powers Act.

OFAC blacklisted Tornado Cash after concluding it was helping launder proceeds of cyber crimes, including more than $455 million stolen by the Lazarus Group, a North Korean government-backed hacking group.

Writing for a panel comprised of conservative judges, U.S. Circuit Judge Don Willett said federal law only gave OFAC the authority to regulate property, which Tornado Cash’s immutable crypto-mixing smart contracts did not constitute.

Such self-executing smart contracts, or “mixers,” provided increased anonymity by collecting, pooling and shuffling cryptocurrencies that were deposited by many users and could not be altered, removed or controlled, Willett said.

The judge, who was appointed by Republican President-elect Donald Trump during his first four-year term, said the design of that privacy-enabling software code rendered it incapable of being owned or deemed legally as property.

He acknowledged “the real-world downsides of certain uncontrollable technology falling outside of OFAC’s sanctioning authority.” But Willett said it was up to Congress to update the 1977 law for the internet age, not the court.

The Treasury Department did not respond to requests for comment.

Paul Grewal, the chief legal officer of Coinbase, in a post on X hailed the ruling as “a historic win for crypto and all who cares about defending liberty.” Coinbase had argued that OFAC’s decision to sanction an entire technology could stifle innovation and undermine privacy.

In May, one of Tornado Cash’s developers, Alexey Pertsev, was sentenced to five years and four months in prison in the Netherlands for money laundering. Two Tornado Cash founders, Roman Semenov and Roman Storm, were separately charged last year with money laundering and sanctions violations by federal prosecutors in New York.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Mexico warns Trump tariffs would kill 400,000 US jobs
next post
Geely Auto sees buyback by Chairman and Parent Group

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Lawyer group urges overhaul of US bank charter...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • What Fed chief Powell said about crypto that may have aided bitcoin’s rally to $100,000
    • Amazon likely to face investigation under EU tech rules next year, sources say

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy