Coinbase CLO Hails Court Decision Vacating OFAC’s Sanctions Against Tornado Cash
A US court has vacated its decision against Tornado Cash, prohibiting the Office of Foreign Assets Control (OFAC) from reinstating previous sanctions on the crypto mixer. Coinbase CLO Paul Grewal hailed the ruling while taking swipes at the Treasury Department over the botched handling of the delisting procedure.
Coinbase CLO Ecstatic Over Court Ruling In Favor Of Tornado Cash
The legal drama between the US Department of the Treasury and Tornado Cash has taken another turn following a new court ruling. According to an X post by Coinbase Chief Legal Officer (CLO) Paul Grewal, the US District Court for the Western District of Texas has vacated its previous judgment that sided with the Treasury Department.
Under the new ruling, the federal court reversed its judgment, noting that OFAC’s decision to impose sanctions against Tornado Cash violated the Administrative Procedure Act. This time, the court is siding with Tornado Cash, with the ruling having far-reaching implications for parties.
The Coinbase CLO notes that the decision bars OFAC from reissuing original sanctions on Tornado Cash. However, the agency can still impose fresh sanctions in the future, but it has to comply fully with the APA.
“OFAC is now legally prohibited from reinstating the original sanction,” said Grewal. “Congratulations to the brave plaintiffs who had the courage to stand up to their own government for their rights under law.”
OFAC imposed sanctions on Tornado Cash after finding ties between the crypto mixer and the North Korean hacking syndicate Lazarus. Despite his support of Tornado Cash, the Coinbase CLO is pushing for improved blockchain transparency in the fight against crime.
Court Trashes US Treasury Over Its Delisting Process
After a series of legal drawbacks, the US Treasury applied to the court to moot its final decision on the matter. At the time, the US Treasury argued that since it had removed Tornado Cash from the SDN list, there was no need for a final court judgment.
However, in the latest ruling, the court took swipes at the Treasury Department over its decision to moot the case. The Coinbase CLO has previously bashed the Treasury Department, noting that the hasty decision to moot the case signals a ploy to reissue sanctions on Tornado Cash.
“On the second prong, defendants do not suggest they will not sanction Tornado Cash again, and they may seek to re-enact precisely the same designation in the future,” said the court before discarding the application.
Following the ruling, Tornado (TORN) price spiked by nearly 8% on the daily charts to reach $7.90. The rally follows a 50% XMR price spike as Bitcoin and other top cryptocurrencies score modest gains over the last day.
Paul Grewal’s heat map is red-hot with the Coinbase CLO revealing new facts from the Ethereum 2.0 investigation documents.
The post Coinbase CLO Hails Court Decision Vacating OFAC’s Sanctions Against Tornado Cash appeared first on CoinGape.
