- A US court ruled that the Ministry of Finance went too far with the imposition of sanctions against unchangeable smart contracts on Tornado Cash.
- The sanctions against Tornado Cash were lifted, but again warned of the risks of cybercrime and crypto abuse.
The US Ministry of Finance officially The sanctions Against Tornado Cash lifteda crypto mixer that has become a symbol of the debate about regulating privacy. For the crypto community, the news of the lifting of sanctions seemed like an uplifting moment after almost two years of controversy, legal drama and the global counter reaction.
At the editorial deadline, the course of the torn token rose by 27.25% and was $ 10.83. For many, this is proof that the demand for privacy can be enforced.
"we have exercised our discretion to remove the economic sanctions against Tornado Cash" – US Treasury pic.twitter.com/mxN6M1kyln
— zerohedge (@zerohedge) March 21, 2025
Court judgment: Smart contracts are not property
The Tornado Cash case initially led to conflicts between blockchain developers and the government. The US government had previously accused the service of being used for laundry illegal funds, including those related to a North Korean hacker group.
On November 27, 2024, however, the US Court of Appeal made a difficult blow to the government’s legal approach. His judgment was clear: the Ministry of Finance had exceeded its powers. Intelligent contracts that are unchangeable and automatically run cannot be regarded as property worthy of sanctions.
The judgment served the government as a memory that not everything in the digital world can be treated like a traditional asset.
Tornado cash developer released from custody and receives crypto support
As CNF reported, Alexey Pertsev, one of the developers of Tornado Cash, was released from custody in the Netherlands in February. He had been sentenced to prison for money laundering. His release was perceived by the crypto community as confirmation that the development of tools to protect privacy is not illegal.
Who is liable if code acts independently?
In addition, the loosening of the sanctions raises further questions about how governments scattered, autonomous technologies should control. Imagine you develop an alarm system that runs without you being able to change it. Then someone is converted into something inamy by someone. Are you responsible for this?
Many developers and users of systems that are not controlled by a single party are wondering where the limits of the fairness of the legal approach are.
Authorities continue to warn of cybercrime and crypto abuse
However, the Ministry of Finance is still concerned about the possibility of the possibility of state -sponsored hackers and the possible illegal use of internet resources. It emphasized that Cypercriminals would continue to be punished, even if the sanctions against Tornado Cash were lifted.
Relief about legal success that strengthens trust in crypto
Torn’s return to the market also shows that the crypto community quickly reacts to legal decisions that support technological freedom. The supporters of Tornado Cash not only look at the code, but also on the principles of the right to privacy and digital autonomy.
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