OFAC Barred From Reinstating Sanctions
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Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure A US Federal court has ruled that the Department of the Treasury is barred from reinstating its sanctions against crypto mixer Tornado Cash. The decision follows the Treasury Department’s attempt to claim the case was moot after delisting the protocol from the Office of Foreign Assets Control’s (OFAC) Specially Designated Nationals (SDN). US Treasury Barred From Reimposing Tornado Cash Sanctions On Monday, Judge Robert Pitman of the US District Court for the Western District of Texas granted a major win to crypto privacy after ruling that the US Treasury’s actions against Tornado Cash were “unlawful” and barred from reimposing the same sanctions on the crypto mixer in the future. In August 2022, OFAC sanctioned Tornado Cash for allegedly failing to impose effective controls preventing malicious actors from laundering over $7 billion worth of crypto since 2019 through the protocol, including $455 million by North Korea’s hacking group, Lazarus Group. US District Court for the Western District of Texas’s amended final ruling. Source: Paul Grewal on X In January 2025, the US District Court for the Western District of Texas reversed the OFAC sanctions against Tornado Cash following a November 2024 court ruling that determined the US Treasury had exceeded its authority by sanctioning the platform. A month ago, OFAC delisted Tornado Cash and nearly 100 Ethereum addresses affiliated with the Ethereum-based crypto mixer from its SDN list. However, the US Treasury faced backlash for claiming that a final court ruling on the lawsuit was moot after delisting the protocol from the sanctions list. Coinbase’s CLO Paul Grewal criticized the Treasury Department’s actions, arguing that it had not assured that it wouldn’t relist he crypto mixer in the future. Moreover, the agency stated that it would continue to…
Filed under: News - @ April 30, 2025 4:21 pm