Court Overturns OFAC Sanctions, Boosts Tornado Cash Amid Industry Support

A U.S. District Court for the Western District of Texas has overturned previous sanctions imposed on cryptocurrency mixer Tornado Cash by OFAC, ruling that the sanctions violated the Administrative Procedure Act. This decision has been warmly welcomed by the crypto industry, with key legal figures such as Coinbase's CLO Paul Grewal defending the ruling. In a show of solidarity, several major crypto companies including Paradigm, Multicoin Capital, and 6th Man Ventures have urged the White House to drop the criminal lawsuit against Tornado Cash co-founder Roman Storm. The industry response underscores a broader sentiment favoring more lenient regulatory approaches for crypto-related services. The favorable ruling and the coordinated call to the White House have contributed to a market reaction, as the price of Tornado Cash’s token (TORN) increased by approximately 8%.