OFAC Reverses Tornado Cash Sanctions, Appeals Dismissed
The US Treasury’s Office of Foreign Assets Control (OFAC) has reversed its 2022 sanctions on Tornado Cash, the Ethereum-based privacy tool. In July, the Eleventh Circuit Court of Appeals dismissed Coin Center’s challenge and vacated the original sanctions ruling as moot. Coin Center argued that sanctioning open-source code exceeded OFAC’s authority. Despite the OFAC sanctions lift, Tornado Cash developers still face legal risk. Roman Storm goes on trial July 14 in New York on money laundering facilitation and AML violation charges, with potential sentences up to 45 years. In the Netherlands, co-founder Alexey Pertsev is appealing a 64-month laundering conviction after his supervised release in February 2025. Developer Roman Semenov remains at large. A brief from venture fund Paradigm supports Storm’s defense. Crypto traders should watch how these legal outcomes affect Tornado Cash usage and the TORN token’s market sentiment.
Neutral
By lifting OFAC sanctions on Tornado Cash, a major legal obstacle is removed, potentially boosting short-term sentiment for the TORN token. However, the criminal proceedings against key developers introduce continued uncertainty. Traders may see limited upside until verdicts on Roman Storm and Alexey Pertsev clarify the legal status. Over the long term, a definitive ruling either way could set a precedent for open-source privacy protocols and impact TORN’s market position. The mixed nature of these developments suggests a neutral impact on TORN’s price trajectory.