Yunus Taşlı 
Tornado Cash, banned by the U.S. in 2022 over money laundering allegations, has achieved a historic legal victory. A federal appeals court ruled to suspend the ban on Tornado Cash, making waves across the cryptocurrency world. Following the decision, Tornado Cash’s native token, TORN, surged by over 500% overnight, regaining investors’ attention.
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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