Tornado Сash sanctions fight ends in Coin Center withdrawal – the group ended its court challenge after the government declined to defend OFAC’s authority, according to Peter Van Valkenburgh. However, the situation isn’t as conclusive as some outlets have shown, citing a sharp 5% spike in TORN today. Actually, the lawsuit was dismissed at the plaintiff’s request and approved by the court. Still, the broader legal proceedings are far from over, as criminal charges against two Tornado Cash developers – Roman Storm and Roman Semenov – remain ongoing.
Did you know new WEEX users can claim $100 just for signing up — plus get a VIP upgrade with lower fees? Sign Uphere.
The Real Story Behind Tornado Cash: Sanctions, Lawsuits, and Privacy Stakes
In 2022, the U.S. Department of the Treasury, through the Office of Foreign Assets Control (OFAC), added Tornado Cash to the SDN list (Specially Designated Nationals and Blocked Persons List), arguing that the protocol was allegedly usedby the Lazarus Group to launder hundreds of millions of dollars, and that the total volume of funds that passed through Tornado Cash and were deemed “illicit,” according to the Treasury, exceeded $7 billion.
And at this point, I would remark that this is a textbook example of a double-edged sword. It’s one of the few protocols aimed at preserving privacy and anonymity, including for entirely legal purposes. But when you enable such possibilities, unfortunately, misuse becomes inevitable. Also, on the subject of total funds: to be fair, the Treasury counts every transaction since the protocol’s launch, regardless of legality.
Still, the fact of past incidents is undeniable, and the consequences followed accordingly. The U.S. Department of Justice brought criminal charges against two Tornado Cash developers:
- Roman Storm – arrested in the U.S., currently awaiting trial.
- Roman Semenov – outside U.S. jurisdiction, but also named as a defendant.
In response, Coin Center filed a separate civil lawsuit against the U.S. Department of the Treasury and OFAC, aiming to challenge the legality of applying sanctions law to non-custodial decentralized protocols that are not legal entities. And the major news is that Coin Center has withdrawn its lawsuit – the government chose not to continue defending its position, and the court granted the motion to dismiss the case.
This was publicly confirmed by Peter Van Valkenburgh, Director of Research at Coin Center:
Following the announcement, TORN briefly spiked by 5% today, though it quickly retraced. Still, it later recovered by 2.7%, where it has remained for several hours.
However, it’s important not to fall into illusions: Tornado Cash is indeed used not only to protect individual privacy or anonymity in high-risk zones but also for less favorable purposes. The criminal cases remain active, and Roman Storm is scheduled to appear in court on July 14. That outcome, too, will likely affect TORN’s standing.
Did you know new WEEX users can claim $100 just for signing up — plus get a VIP upgrade with lower fees? Sign Uphere.
Conclusions
Tornado Cash may face turbulent winds shortly – forces that could decisively shift its direction. We’ll be watching closely. Stay tuned to follow the latest developments in crypto, blockchain, and regulation.
