Tornado Cash’s TORN price jumps 120% following news of potential sanction relief

Tornado Cash’s native token, TORN, experienced a dramatic surge of 124% on January 22, 2025, following a significant court ruling that appeared to lift the U.S. sanctions imposed on the platform’s smart contracts. The surge came in response to a decision made on January 21, in which the court ruled that Tornado Cash’s smart contracts should not be considered “property” under U.S. law, effectively challenging the sanctions.

The case, which has been ongoing since November 2024, involved six Tornado Cash users who contested the sanctions. The U.S. Office of Foreign Assets Control (OFAC) had previously claimed that Tornado Cash had facilitated illegal activities, such as money laundering, by enabling anonymous transactions. However, the court ruled in favor of the platform, stating that smart contracts, once deployed, operate autonomously and cannot be owned, controlled, or altered by any individual or entity—including the creators of the smart contracts.

Judge Don Willett, who delivered the ruling, explained that the immutable nature of the contracts means they are not considered property because they cannot be possessed in the traditional sense. The contracts run on their own once created and are beyond the control of any parties, which removes the possibility of sanctions applying to them.

While the court acknowledged the concern that Tornado Cash could be used for illicit activities, it emphasized that it was not in a position to alter existing legal frameworks. The ruling made it clear that the court’s role is not to modify laws but to uphold the existing statutory arrangements set by Congress.

Following the ruling, Tornado Cash’s token, TORN, experienced an impressive price jump, reaching $17.67, a 124% increase from its previous value. This spike reflects market speculation and optimism surrounding the legal victory, as traders react to the potential implications of the court’s decision. However, as of the latest updates, there is no official confirmation that the U.S. Treasury’s Office of Foreign Assets Control (OFAC) has officially lifted the sanctions on Tornado Cash. This situation has left some uncertainty hanging over the long-term effects of the ruling.

The dramatic price surge in TORN highlights the volatile nature of cryptocurrency markets, where legal developments and regulatory changes can have a significant impact on asset prices. Investors and analysts are now closely monitoring any further actions or official statements from regulatory bodies like OFAC that could clarify the status of Tornado Cash and its token in the U.S. legal landscape.