Image credits - Cointelegraph
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In a groundbreaking ruling, the US Court of Appeals annulled the sanctions imposed by the US Treasury Department’s Office of Foreign Assets Control (OFAC) on Tornado Cash, resulting in a dramatic 130% surge in the price of its native token, TORN. This ruling has not only triggered an immediate price rally but also raised important discussions on the future of cryptocurrency regulation.
The US Treasury Department had previously sanctioned Tornado Cash in 2022, accusing the platform of enabling over $7 billion in money laundering activities, primarily for North Korean hackers. However, the Court of Appeals ruled that OFAC exceeded its authority by sanctioning Tornado Cash’s smart contracts, emphasizing that smart contracts are not considered “property” and therefore cannot be owned or sanctioned by any entity.
The court made it clear that immutable code, such as the smart contracts used by Tornado Cash, is not subject to government control. This ruling sets a precedent for how decentralized platforms are treated by regulators and could have broad implications for future cases involving cryptocurrency projects.
Following the ruling, the price of TORN surged to $17.74, marking a 130% increase within just 24 hours. The recorded low and high during this period were $7.80 and $20.91, respectively. Trading volume also spiked by about 120%, indicating renewed interest from traders and investors.
The ruling has sparked a broader conversation about the future of decentralized finance and the potential regulatory challenges faced by cryptocurrency projects.
Disclaimer: This article is for informational purposes only and should not be considered financial advice.