Tornado Cash, a cryptocurrency mixer that was placed on the OFAC sanctions list by the US Treasury Department in August 2022, received a positive decision from the US Court of Appeals yesterday.
The U.S. Court of Appeals overturned the lower court’s decision, stating that OFAC exceeded its authority to sanction Tornado Cash. The court also noted that immutable smart contracts are not property and cannot be sanctioned under existing law.
After this decision, the price of Tornado Cash's token TORN experienced a huge increase, while 10X Research founder Markus Thielen evaluated the impact of the Tornado Cash decision.
Markus Thielen said that the US court's decision is seen as positive for the Ethereum and DeFi industry.
“Tornadi Cash sets a precedent that allows developers to create and deploy smart contract protocols without fear of sanctions, provided that no fees are charged,” Thielen said.
Thilen stated that this decision will provide significant benefits for Ethereum and DeFi, saying:
“As Ethereum continues to be the leading blockchain for DeFi, the Tornado Cash decision is considered positive for the broader DeFi ecosystem and other altcoins on the Ethereum network in particular.
This decision could have huge implications for Ethereum and many other ETH-based altcoins.”
TORN, which started to rise after the news, continues to be traded at $16.8 with an increase of over 300%.
*This is not investment advice.
