Bitcoin, the flagship cryptocurrency has rebounded from its recent slump following a major win secured by Crypto mixer Tornado Cash in the courts.
Bitcoin slumped over the week, nearly touching the $90,000 price level, but it has rebounded to $94,941 at the time of this report.
In the court ruling, a three-judge bench said it is unlawful to sanction Tornado Cash’s smart contract. Tornado Cash was supported in the case by Brian Armstrong’s Coinbase, the largest crypto exchange in the United States.
Paul Grewal, the Chief Legal Officer of Coinbase announced the development via his X page explaining his position on the issue and why Coinbase played a key role in the case.
“Privacy wins. Today the Fifth Circuit held that @USTreasury ’s sanctions against Tornado Cash smart contracts are unlawful. This is a historic win for crypto and all who care about defending liberty.
Coinbase is proud to have helped lead this important challenge.
These smart contracts must now be removed from the sanctions list and US persons will once again be allowed to use this privacy-protecting protocol. Put another way, the government’s overreach will not stand.
No one wants criminals to use crypto protocols, but blocking open-source technology entirely because a small portion of users are bad actors is not what Congress authorized. These sanctions stretched the Treasury’s authority beyond recognition, and the Fifth Circuit agreed.
In particular, the Court ruled that while the Treasury has the power to take action against “property,” the open-source, immutable smart contracts at the core of Tornado Cash *can’t* be owned by anyone and so are not “property” subject to sanctions.
We appreciate the Court’s careful consideration in this matter. Looking ahead, Coinbase will not relent in our efforts to advocate for clear, fair rules that foster innovation in the US and abroad.
Thank you to my team and @KannonShanmugam and his team at @PaulWeissLLP for their tireless work over two years to get us here. “Paul Grewal tweeted.
Tornado Cash’s victory spells a turning moment for crypto companies in the US facing legal issues. The arrival of a crypto-friendly president means more regulatory clarity for the industry and legal wins like this are pointers to that effect.
Analyst Weigh in on Bitcoin’s recent slump
Bitcoin went from almost hitting the $100,000-mark last week to nearing the $90,000 level. Analysts believe this slump is a mere retracement and the Bullish sentiment around the coin is still intact.
Charles Hoskinson, the founder of Cardano predicted that the crypto asset will hit $250,000 to $500,000 in the next 12 to 24 months.
The crypto millionaire believes Bitcoin is the store of value for the internet and will keep playing that role now that it has a defi layer. Bitcoin at the moment is exchanging hands for $94,941 roughly $5,000 short of the highly anticipated $100,000.
What to Know
- Tornado Cash came under scrutiny after the crypto mixer was used repeatedly by hackers to launder or scramble the transaction trails of their heist making it difficult to trace. The Crypto mixer has become a favorite for bad actors in the industry drawing scrutiny from the global crypto community.
- The WazirX hacker behind the $230 million heist on India’s biggest exchange used Tornado Cash to launder over $12 million.
