A U.S. federal appeals court ruled that the U.S. Treasury Department’s sanctions against Tornado Cash, an on-chain privacy tool, are unlawful.
A Nov. 26 ruling from the U.S. Court of Appeals for the Fifth Circuit found that the Office of Foreign Assets Control exceeded its statutory authority by sanctioning Tornado Cash.
“We hold that Tornado Cash’s immutable smart contracts… are not the ‘property’ of a foreign national or entity, meaning they cannot be blocked under the [International Emergency Economic Powers Act], and OFAC overstepped its congressionally defined authority,” the court said. “We reverse and remand to the district court with instructions to grant… partial motion for summary judgment based on the Administrative Procedure Act.”
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#undefined [Source: TheDefiant]