The Fifth Circuit Court of Appeals has ordered the US Treasury's Office of Foreign Assets Control (OFAC) to remove addresses linked to Tornado Cash from its list of Specially Designated National and Blocked Persons (SDN). Tornado Cash is a controversial crypto mixing service that was banned by OFAC in August 2022 due to its use by hackers to launder stolen crypto. The court stated that Tornado Cash's smart contracts are not the property of a foreign entity and cannot be blocked under IEEPA. Following the court's decision, Tornado Cash's governance token, TORN, saw a significant increase in value. The use of Tornado Cash as a privacy tool has been defended despite its association with illicit activities.



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