Consolidated Comment on the Designation and Redesignation of Tornado Cash; Ensuing Litigation (System Ed. Note)

Last substantive commentary amendment:
Aug. 19 2023

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TURBOFAC Commentary (2591 words)

Consolidated Comment on the Designation and Redesignation of Tornado Cash; Ensuing Litigation (System Ed. Note)

[11-29-24 Update - see Joseph Van Loon et al v. Department of the Treasury et al. (2024, 5th Cir.), and comments thereto. The 5th Circuit reversed the district court opinion upholding all challenged aspects of OFAC’s blocking action vis-à-vis Tornado Cash, but the below still serves as essential background. The below has not yet been amended to reflect the 5th Circuit opinion.]

1) Background

On August 8, 2022, OFAC designated, pursuant to Cyber-related EO 13694, “Tornado Cash”. As described in the designation notice (see bottom of U.S. Treasury Sanctions Notorious Virtual Currency Mixer Tornado Cash (August 8, 2022 Press Release)), OFAC described Tornado Cash as follows:

“Tornado Cash (Tornado) is a virtual currency mixer that...