The recent ruling by the US Court of Appeals for the Eleventh Circuit has brought closure to the legal battle involving Coin Center and the US Treasury Department over the sanctions against Tornado Cash, a widely discussed crypto mixer. The court’s decision reflects significant developments in the regulatory landscape for cryptocurrencies.

Earlier this year, the Treasury Department’s Office of Foreign Assets Control (OFAC) took the notable step of removing Tornado Cash from its sanctions list, arguing that this development rendered the dispute irrelevant.

End of the Tornado Cash Sanction Saga

Peter Van Valkenburgh, the executive director of Coin Center, expressed a sigh of relief following the court’s decision. On social media platform X (formerly known as Twitter), he highlighted that this marks a pivotal moment in their legal challenges concerning the broad interpretation of sanction laws.

He further pointed out the government’s lack of willingness to defend what he considered an expansive view of sanctions that may infringe on individual rights.

Initially imposed in August 2022, Tornado Cash faced sanctions from the OFAC over allegations of facilitating money laundering activities, which barred US individuals and companies from interacting with the platform. This prompted various lawsuits from crypto advocacy organizations, with Coin Center prominently challenging the legal basis for such sanctions.

Throughout the appellate proceedings, the court had shared doubts regarding OFAC’s jurisdiction, sentiments that were later validated by the Treasury’s decision to rescind the sanctions.

While Coin Center recognizes that the appeal process would only be deemed entirely moot following the outcome of a separate ruling from a Texas court, both Coin Center and the Treasury Department have agreed to conclude this litigation phase.

Court Proceedings for Roman Storm

In an adjacent legal matter, Roman Storm, co-founder of Tornado Cash, is bracing for an imminent criminal trial, which is set to begin shortly. In a recent interview with Crypto In America, Storm shared insights into his contemplation over whether he will take the stand in his defense.

His legal representation has made it clear that they plan to contest claims indicating that he gained from illicit activities associated with the crypto-mixing platform. However, Storm has withheld his final decision on testifying, stating, “The time will come for that choice. I’m yet to conclude what’s best in this situation.”

Storm was indicted in 2023 on multiple charges, including conspiracy to engage in money laundering and operating without a licensed money transmitter, following the Treasury’s sanctions on Tornado Cash.

The government contends that the platform was exploited by North Korea’s notorious Lazarus Group to manipulate a significant amount of stolen cryptocurrency.

Currently, Tornado Cash’s native token, TORN, is showing a trading price of $9.30. This marks an impressive increase of 308% year-to-date, reflecting a strong performance that parallels XRP, which has seen a remarkable 443% uptick in the same timeframe. Both assets have emerged as standout performers within the cryptocurrency market.

Stay tuned for further updates surrounding regulatory changes and litigation developments in the evolving landscape of cryptocurrency.