Tornado Cash and the Turning Point in Legal Proceedings

The court emphasized that Tornado Cash is not owned by any individual or entity and that smart contracts are independent software. The ruling stated:

“These smart contracts operating on the blockchain are not controlled by any person or organization. By sanctioning this software, the Office of Foreign Assets Control (OFAC) has exceeded its authority.”

This determination could lead to a reevaluation of the legal definitions surrounding decentralized projects like Tornado Cash. Whether the U.S. Treasury will appeal the decision remains to be seen in the coming months.

A Historic Rally for TORN Token

The court’s decision marked a turning point for Tornado Cash’s native token, TORN. Having dropped below $2 in October, the token skyrocketed past $20 overnight, marking a more than 500% increase in value. This surge created significant market turbulence and reignited investor interest in the project.

TORN’s performance serves as a notable example in both the cryptocurrency markets and the decentralized finance (DeFi) space. However, some analysts warn that this rally could be short-lived and driven by speculative short-term movements.

Tornado Cash and the Shadow of Sanctions

In 2022, the U.S. sanctioned Tornado Cash for allegedly facilitating money laundering activities. The project became a target for regulators due to its ability to anonymize users’ transaction histories.

Following the sanctions, Tornado Cash developer Alexei Pertsev was detained in the Netherlands and later sentenced to 5 years and 4 months in prison. Pertsev’s case sparked heated debates about regulatory approaches to decentralized projects.

Future Expectations for Tornado Cash

While TORN victory has brought optimism to the crypto market, experts stress the importance of monitoring the long-term implications. Analysts caution investors to approach TORN token’s sudden rise with care, highlighting the continued uncertainty in the regulatory landscape.

Moreover, TORN legal battle could establish a precedent for other decentralized projects. However, such projects may need to develop new strategies to enhance user trust and work more harmoniously with regulators in the future.

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The post Tornado Cash Rises with Court Victory | The Secret Behind 500% Growth appeared first on Coin Engineer.

Tornado Cash is a tumbler on the Ethereum blockchain and it’s a tool for providing privacy. The tool is working EVM compatible. So, users can transfer the platform between other dApps built on Ethereum. But it also can work with BSC, Polygon, Optimism, Gnosis Chain, etc.

Tornado Cash is also open-source, but last year GitHub removed its repository because of the Lazarus Group hacking event. The platform “helped” North Korean hackers. That’s why the platform faced some problems like USA’s cases, the Circle’s freezing, etc.

Even it’s developer Alexsey Pertsev was arrested in Amsterdam. Because nobody stops the platform. They can just do it. In there, we are seeing Blockchain technology and it’s power.

How To Work Tornado Cash?

Tornado Cash is the mixer. If we talk about it using an easy way, we can imagine the platform’s system like that: There are big pools. The pools consist of different digital assets. For example, BTC, ETH, BNB, and XRP pools.

Users want to provide their digital assets. And the user has 1 BTC, in this scenario he/she must bring own assets to the BTC pool. After that BTC pool is mixing all of the assets. What happened? The user’s address is 0x1a (for example), and the 1 BTC belongs to the address. But already it isn’t. The 1 BTC belongs to 0x1B. 

In this case, you can provide your privacy and nobody can track you. Because already wasn’t 1 BTC in the 0x1a address. The problem is that: You can’t convert it to fiat money. Because you need CEX (centralized exchange). If you directly send your assets from Tornado Cash to Binance, the exchange will notice that.

Overall, Tornado Cash’s work is just mixing. That’s why Tornado Cash also “helps” malicious actions. Because nobody controls the platform and nobody can block the hacker and its assets.

Because blockchain is a decentralized and permissionless system.

Is Tornado Cash Using Legal?

No, using it isn’t legal. It doesn’t apply just to Tornado Cash. If any platform works like that, regulators will block and announce them as illegal platforms. But they can’t stop Tornado Cash because nobody can manage blockchain and its data.

But about 2 months ago USA government could stopped and blocked one mixer named ChipMixer. And the mixer used for cryptocurrencies. But it was defunct 2 months ago. The mixer mostly was used by DarkWeb and its users. Today there aren’t any websites and backend servers belonging to ChipMixer.

Yes, it’s true, we can’t use it’s website. But the platform’s backend is still alive. Because its backend is blockchain.

Why Is It Unstoppable?

We already answered the question. There’s solve reason, Tornado Cash has blockchain as the backend. There’s a second factor. It’s the Ethereum blockchain because the network is the most decentralized blockchain. Because the Ethereum network has almost 500.000 nodes. I mean the network’s data is everywhere, is in all the sides of the world.  If the U.S. government wants to block Tornado Cash, first of all, it must find the nodes and remove the data.

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