The U.S. Court of Appeals closed the appeal regarding Tornado Cash sanctions, but legal battles continue for its developers. Here's the latest on the controversial crypto mixer.
Alright, New Yorkers, let's talk crypto drama. The Tornado Cash saga has taken another twist. The appeal challenging the sanctions is done, but the legal whirlwind is far from over.
The Appeal is Over: A Win, But Not a Victory
The U.S. Court of Appeals for the Eleventh Circuit officially ended the appeal made by Coin Center against OFAC's sanctions on Tornado Cash (July 3, 2025). This happened after the Treasury Department removed Tornado Cash from its sanctions list, following rulings that OFAC couldn't sanction smart contracts. Coin Center's Peter Van Valkenburgh called it a win against an 'overbroad interpretation of sanctions laws.' Looks like the government didn't want to keep fighting a battle they were likely to lose.
Tornado Cash Price Jumps
Following the news, TORN, Tornado Cash's token, saw a nearly 5% price increase. This shows that any positive news, even a dismissed appeal, can inject some life into a project.
Developers Still in the Hot Seat
Here's the catch: while the sanctions appeal is done, the developers of Tornado Cash aren't out of the woods. Roman Storm, is still facing criminal charges, with his trial scheduled to start July 14, 2025, in New York. He's accused of money laundering and sanctions violations, even though he claims he didn't profit from illicit transactions.
Another co-founder, Alexey Pertsev, was already found guilty of money laundering in the Netherlands and sentenced to five years. Roman Semenov, the third co-founder, is still wanted by the FBI.
Why This Matters
This case highlights the ongoing tension between crypto innovation and regulatory concerns. The government's approach seems to be shifting away from directly targeting the technology (like mixers) but is still focused on individuals allegedly involved in illicit activities.
My Take: A Nuanced Situation
It's a complicated situation. On one hand, you've got privacy concerns and the argument that technology itself shouldn't be sanctioned. On the other, there's the very real issue of money laundering and the use of these tools for nefarious purposes. The court denying the motion to dismiss the charges against Roman Storm, stating that the BSA’s scope does not require that the technology take control of user funds is a clear sign that regulation is coming whether crypto enthusiasts like it or not.
What's Next?
Keep an eye on Roman Storm's trial. The outcome could set a precedent for how developers of decentralized technologies are treated under the law. Also, with Do Kwon of Terraform Labs also facing legal battles, it's clear that the legal scrutiny of the crypto world is intensifying.
So, while the appeal may be closed, the Tornado Cash saga is far from over. Stay tuned, folks, because this is a story that's still unfolding. And remember, always do your own research before diving into the crypto pool. It can be a wild ride!
