The post Tornado Cash Victory: TORN Token Surges 130% After Court Lifts OFAC Sanctions appeared first on Coinpedia Fintech News
Tornado Cash’s native token, TORN, has surged 130%, trading at $17.74 after a landmark decision by a US appeals court lifted sanctions imposed by the US Treasury’s Office of Foreign Assets Control (OFAC). This decision has given a boost to the investor’s faith in the system, signaling a positive change is on the way. Following the news many expect that TORN prices will go even much higher.
The Court’s Game-Changing Ruling
The US appeals court during the final verdict noted that OFAC had gone beyond its authority by sanctioning Tornado Cash in 2022. The Treasury Department had accused the crypto mixer of facilitating over $7 billion in money laundering for malicious actors, including North Korean hackers. However, the court ruled that immutable smart contracts, which operate autonomously and cannot be controlled by any entity, do not qualify as “property” under OFAC’s jurisdiction.
This ruling, stemming from a lawsuit filed by plaintiffs Van Loon et al., sets a critical legal precedent. It limits the scope of OFAC’s authority, offering a clearer distinction between decentralized technologies and traditional assets.
Impact on Crypto Regulation
The decision is a big victory for the decentralized finance (DeFi) sector, emphasizing the importance of distinguishing between autonomous code and controlled entities. It may pave the way for further legal challenges against restrictive regulations on decentralized platforms. The ruling also reinforces the notion that smart contracts, being immutable and autonomous, should not be treated as traditional financial instruments.
With this ruling, the crypto industry could see renewed confidence among developers and investors, growing innovation and adoption. It also underscores the growing need for regulators to adopt a positive approach to blockchain technology.
Trading Frenzy Pushes TORN Higher
After losing almost 95% of its market share last February, the market’s reaction with this ruling has given a new hope. TORN’s price surged from a low of $7.80 to a high of $20.91 in just 24 hours. Trading volumes spiked by 120%, reflecting heightened interest and optimism among traders.
This ruling not only revives Tornado Cash’s prospects but also sends a strong message about the limits of regulatory overreach in the crypto space. As the industry digests this development, it may set the stage for a more balanced approach between regulators and decentralized technology advocates. The Trump administration will soon roll out new crypto policies and this rulling shows that regulatory overreach will take a back seat now.
