Cryptocurrency mixing services, which aim to increase privacy and make transactions harder to trace, have become popular among both legitimate users and criminals. The US Treasury Department's Office of Foreign Assets Control (OFAC) has imposed sanctions that prohibit "US persons" from engaging with certain mixing services, including Tornado Cash. However, two separate lawsuits argue that OFAC does not have the authority to impose these sanctions, claiming that it involves an "unprecedented exercise of [its] authority." The cases center around the interpretation of key terms in the laws that authorize OFAC's actions and raise questions about the role of smart contracts and decentralized autonomous organizations. The outcome of these lawsuits could have significant implications for the crypto community and the authority of administrative agencies like OFAC.



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