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 (2561 words)

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

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 operates on the Ethereum blockchain and indiscriminately facilitates anonymous transactions by obfuscating their origin, destination, and counterparties, with no attempt to determine their origin.”

As described in the designation notice, it appeared as if OFAC was designating the actual software/software program named Tornado Cash, rather than an identifiable “person” whose property and interests and property could be blocked pursuant to