US Court Blocks OFAC from Reinstating Tornado Cash Sanctions — Major Win for Decentralization

In a landmark ruling, a U.S. federal court has **permanently blocked the Treasury’s Office of Foreign Assets Control (OFAC)** from reimposing sanctions on **Tornado Cash**, the decentralized crypto mixer.

What Happened?

Judge Robert Pitman ruled that OFAC’s actions against Tornado Cash were **unlawful**, stating that immutable smart contracts cannot be classified as "property" under federal sanctions law. This decision follows a prior ruling by the Fifth Circuit Court, which found that OFAC had overstepped its authority.

OFAC initially sanctioned Tornado Cash in 2022, alleging its use by hackers and bad actors. But the crypto community pushed back, arguing that **open-source, decentralized code shouldn't be punished like centralized services**.

Why This Matters

- **Legal Precedent**: The decision reinforces that decentralized, autonomous code is fundamentally different from traditional entities.

- **DeFi Defense**: A win for privacy and protocol neutrality, protecting devs and users from overbroad regulatory action.

- **Checks on Power**: Courts signaling limits on how far U.S. regulators can go in targeting blockchain-based tools.

What’s Next?

While the **platform is no longer under sanctions**, Tornado Cash developers like **Roman Storm** and **Alexey Pertsev** still face legal challenges in the U.S. and Europe.

Still, the message is clear: **decentralization is not a crime**.

Do you support this ruling or think privacy tools need stronger oversight?

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