Official announcements from the U.S. Treasury Department or court filings

Fifth Circuit Court Rules Tornado Cash Smart Contracts Sanctions Unlawful

Nov 26, 2024, 11:16 PM

The U.S. Court of Appeals for the Fifth Circuit has ruled that the Treasury Department overstepped its authority by sanctioning the Tornado Cash smart contracts under the International Emergency Economic Powers Act (IEEPA). The court's decision, which found that immutable smart contracts are not property subject to sanctions, marks a significant legal victory for the cryptocurrency industry. This ruling could have implications for privacy software development and potentially influence ongoing legal cases related to Tornado Cash. The Office of Foreign Assets Control (OFAC) had previously added Tornado Cash to its sanctions list, a move that was challenged by the Heritage Foundation and Coin Center. This decision might also impact the trial of Roman Storm, where the court debates whether to criminally charge the developers of Tornado Cash.