tornado cash

Tornado Cash Sanctions Overturned by U.S. Appeals Court; TORN Soars Over 500%

A U.S. federal appeals court has delivered a major legal victory to the crypto sector by throwing out the U.S. Treasury Department’s earlier effort to directly sanction crypto mixing service Tornado Cash.

The court found that the government didn’t have the proper tools to include the actual technology underpinning the service as a sanctioned entity.

Tornado Cash’s native token, TORN, rocketed up by over 500% in the hours following the ruling.

Did Sanctioning Tornado Cash Work?

Sanctions are an effort to throw the weight of the U.S. dollar around to tamp down on activities the U.S. government thinks may be harmful – like money laundering to fund terror groups or rogue nations. The New York Federal Reserve thinks they had a real effect in crypto.