A United States court has declared that smart contracts used by Tornado Cash, a crypto mixer, cannot be sanctioned despite allegations by authorities. Tornado Cash faced sanctions in August 2022, causing its token TORN to experience a flash crash and lower usage. The Fifth Circuit Court of Appeals ruled that the Treasury Department’s sanctions against smart contracts guiding Tornado Cash are illegal.
This ruling is a victory for the crypto industry, privacy purists, and advocates for innovation. Tornado Cash is a tool for obfuscating transactions on Ethereum, allowing users to “unlink” their public crypto movements by offering a layer of anonymity. However, it has attracted hackers and scammers who wanted to launder stolen money, leading to the Treasury Department’s sanctions.
The court’s ruling acknowledges that if the government decides to ban mixers like Tornado Cash, it would stifle innovation, as it would be like penalizing encryption.
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<p>The post Tornado Cash Smart Contracts Cannot Be Sanctioned, Court Declares! TORN Rallies 1,300% first appeared on CoinBuzzFeed.</p>