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ARTICLE · 25 JUNE 2024

Texas Court Upholds Sanctions Against Tornado Cash

Bull Blockchain Law LLP
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In a case challenging the sanctions levied against Tornado Cash in the U.S. District Court for the Western District of Texas, Judge Robert Pitman sided with the Department of Treasury.

United StatesTechnology
Tyler Harttraft
Tyler Harttraft

In a case challenging the sanctions levied against Tornado Cash in the U.S. District Court for the Western District of Texas, Judge Robert Pitman sided with the Department of Treasury. His Order entered on August 17, 2023, grants the Department of Treasury and OFAC's cross-motion for summary judgment, upholding the prohibition on American citizens' use of the Tornado Cash software.

This article summarizes the Court's ruling on novel issues debated by the Coinbase-funded plaintiffs and the U.S. government.

Background

Tornado Cash is a free software comprised of 20 Ethereum addresses that allows persons to anonymously transact tokens on the Ethereum blockchain. This is an important fact as the Court's decision turns on its understanding of whether Tornado cash is a "thing" or an "entity."

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