TechFlow reported that in November last year, the U.S. Office of Foreign Assets Control (OFAC) added Tornado Cash to its "Specially Designated Nationals and Blocked Persons" list. Subsequently, the cryptocurrency advocacy group Coin Center filed a lawsuit against OFAC of the U.S. Department of Treasury over its sanctions on Tornado Cash, but the case has now been dismissed.
In the lawsuit, Coin Center argued that addresses associated with the core non-upgradable smart contracts constituting Tornado Cash were not appropriate targets for sanctions. One key argument focused on whether any entity retained beneficial interest in these contracts, given they can no longer be altered. However, the court found that “TORN holders still retain indirect benefits from the use of the core software tools and the overall service, as this increases the value of TORN.”
The court also rejected the argument that Tornado Cash is protected under the First Amendment, stating that “the designation of Tornado Cash does not prevent the plaintiffs … from spending or donating money for political purposes, nor does it hinder organizations from accepting anonymous donations.”
Neeraj Agrawal, public relations head at Coin Center, expressed disappointment and explained that the organization intends to appeal the decision.
