An American federal court ruled that the Treasury Department is prohibited from restoring its penalties against Crypto Mixer Tornado Cash. The decision follows the Ministry of Treasury’s attempt to demand that the case was a discussion after the protocol was deleted from the Office of Foreign Assets (OFAC) for citizens appointed (SDN).
The US Treasury was prevented from re -imposing cash sanctions from the hurricane
On Monday, Judge Robert Beatman from the American District Court of the Western Region in Texas granted a major victory over the privacy of encryption after he ruled that the US Treasury Acts against Tornado Cash were “illegal” and prevented from re -imposing the same sanctions on the encryption mixer in the future.
In August 2022, OFAC Tornado Cash acknowledged because of its failure to impose effective controls that prevent malicious actors from washing more than $ 7 billion of encryption since 2019 through the protocol, including 455 million dollars by the North Korean penetration group, Lazaros.
US District Court for the Western District of Texas's amended final ruling. Source: Paul Grewal on X
In January 2025, the American provincial court for the Western region of Texas reflected the Offac sanctions against Tornado Cash after the court ruling in November 2024, which decided that the US Treasury had exceeded its authority through the penalty on the platform.
A month ago, OFAC cleansed Tornado Cash and nearly 100 ETHEREUM addresses of the ETHEREUM code based on the SDN menu. However, the US Treasury Department faced a violent reaction to the claim that the final court ruling on the case was engraved after the protocol was deleted from the sanctions list.
Clo Paul Grewal from Coinbase criticized the actions of the Treasury, on the pretext that it has not confirmed that it would not re -encryption in the future. Moreover, the agency stated that it will continue to monitor any transactions that could benefit the malicious actors or the Democratic People’s Republic of Korea (DPRK).
In the amended final ruling, the court ruled that “this case is not a subject of discussion because the case is able to repeat while evading the review,” noting that the US Treasury Department sought to abandon the case by changing the relevant facts “by conducting an additional agency” instead of “submitting a respondent on the entry of the final ruling that affects the fifth circle.”
The defendants do not suggest that they will not oppose money from the hurricane, and may seek to “reformulate () specifically (appointment)” in the future (…). Instead of admitting that the matter of the fifth district requires the wreckage of the hurricane, the defendants state that they practiced their “estimated authority” in making a decision to do this based on more general considerations and legal considerations. They publicly mention that they will continue to review economic sanctions in the case closely in the future.
As a result, Judge Petman granted the prosecutor’s request to obtain a brief ruling and a matter that “naming the defendants is illegal and thus allocating it, and that the defendants are permanently obligated to impose it.”
The battle of encryption privacy continues
The court also recognized that the Tornado Cash case includes “sensitive issues of security and economic organization”, and that the US Treasury insists that the fifth circle ruling be dealt with as “narrow” to restrict the agency from the organization of similar assets and technology in the future.
However, the judge stated that “how the future courts will narrow or widely explain the ruling of the fifth circle when reviewing the decisions of the other agency is not the case before this court,” and it is simply “to introduce a partial brief ruling in favor of the prosecutors according to instructions from the fifth circle.”
It is worth noting that the battle for the tools of encryption privacy and open source developers continue, as the co -founder of Tornado Cash, the Roman Storm, the developer, Alexey Pertsev, is preparing for legal defense. Persif, who was convicted nearly a year ago, is preparing for a 5 -year prison sentence in the Netherlands, while the storm, which faces up to 45 years in prison if convicted, is waiting for his trial in July.
Defi Education Fund recently sent a letter to US President Donald Trump Crypto CZAR, David Sacks, and urged the White House to end the war of the Ministry of Justice on open source developers.
The message, signed by many industry leaders, indicated that trying to keep software developers is responsible for how their third parties use a terrible precedent precedent and “freezing” in the United States, which would oppose Trump’s promise to make America “the planet’s coding capital.”
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