Tornado Cash Triumphs: U.S. Court Overturns Sanctions, Token Surges 400%

• The U.S. appeals court ruled in favour of Tornado Cash stating that the Treasury Department overstepped by sanctioning the token.
• As a result, the token witnessed gains of over 400% with a massive volume gain of over 18352%, according to CoinMarketCap.
• The Treasury Department, earlier in 2022 had placed Tornado Cash was a Sanctioned Entity, indicating claims of laundering more than $7 billion.

Tornado Cash Court (TORN) crypto is finally witnessing a resurgence as the token as the U.S. appeals court ruled in favour of the token. The U.S. appeals court, on 27 November ruled that the Treasury Department overstepped by sanctioning crypto mixer Tornado Cash.

Launched in 2019, it leverages zero-knowledge proofs to provide anonymity in cryptocurrency transactions. By allowing users to obfuscate the origin and destination of funds, Tornado Cash ensures that transactions cannot be easily traced on the public Ethereum blockchain.

As a result, the token witnessed gains of over 400% with a massive volume gain of over 18352%, according to CoinMarketCap.

What did the U.S. court say about Tornado Cash?

Reversing the lower court’s decision to sanction the Tornado Cash crypto, the 5th Circuit Court of Appeals said that Tornado Cash’s immutable smart contracts—self-executing code that cannot be changed or owned—are not “property” under U.S. law. The Treasury Department, earlier in 2022 had placed the token as a Sanctioned Entity, indicating claims of laundering more than $7 billion, including $455 million connected with the Lazarus Group belonging to North Korea.

Further steps were taken by adding to the Specially Designated Nationals list 44 smart contract addresses associated with Tornado Cash, leading to litigation launched by six Tornado Cash users on the support of Coinbase.

The court’s ruling, however, explained that immutable smart contracts, which are generated through a decentralized “trusted setup ceremony,” cannot be considered property of the IEEPA. Circuit Judge Don Willett acknowledged legitimate concerns by the government about the misuse of cryptocurrency but emphasized that federal law restricts the Treasury’s authority to act against tangible or controllable property.

Tornado Cash crypto witnesses massive gains

As a result of the ruling, the Tornado Cash crypto can now be viewed as a legitimate method for securing personal financial data. The token witnessed a sudden spike in the intraday trading session, with several buyers looking to make the most of the momentum.

Image Credit: Trading View

The 14-day RSI of the token stands a 97.30, indicating an extreme greed sentiment due to the ruling.

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The MACD indicator too seconds the fact and is witnessing a sharp increase in momentum, and it could last for some time should the conditions remain in its favour.

As of 27, November, TORN was trading at $17.94 with a 24-hour trading volume of $1,30,73,913. Enjoying a live market cap of $9,43,15,340, the token is projecting more buyers entering the market in the near future.

All in all, TORN represents a significant innovation in blockchain privacy, empowering users with tools to protect their financial data. The court ruling could see more followers of the token venturing into the world of cryptocurrency.