Tornado Cash sanctions were reversed by Texas Court - win for crypto privacy

[bitmover]

https://cointelegraph.com/news/us-texas-court-reverses-tornado-cash-sanctions-crypto-privacy-win
US court overturns Tornado Cash sanctions in pivotal case for crypto

In a win for crypto privacy technologies, a US court in Texas has overturned Tornado Cash sanctions.
...


“It is ordered and adjudged that the judgment of the district court is reversed, and the cause is remanded to the district court for further proceedings in accordance with the opinion of this court.”

However, Tornado Cash developer Alexey Pertsev remains in custody for money laundry charges.

I believe this is a big step towards a more friendly regulation in the future!

[hugeblack]

Although this is good news, the details say that the reason is that OFAC is overstepping its congressionally mandated authority by considering that smart contracts are not “property” of a foreign citizen or entity, and therefore mixers and centralized privacy systems will fall under OFAC’s jurisdiction.


This could be good news for developers and XMR.

“We hold that Tornado Cash’s immutable smart contracts (the lines of privacy-enabling software code) are not the “property” of a foreign national or entity, meaning (1) they cannot be blocked under IEEPA, and (2) OFAC overstepped its congressionally defined authority.” The six plaintiffs also argued that blockchain transactions can be traceable, which is why some crypto users “want additional options to keep their transactions private.”

[bitmover]

This could be good news for developers and XMR.

Xmr is just loaing value for a long time now... it is almost forgotten by traders.

Maybe something like this could trigger a XMR spike or a bull run.

[Mia Chloe]

Xmr is just loaing value for a long time now... it is almost forgotten by traders.
Maybe something like this could trigger a XMR spike or a bull run.

Yeah you are right but it isn't much of trader's fault and that is because many Centralised exchanges don't offer privacy coins for trading and even buying or selling that's basically because you find out that most government policies restrict them from doing so. It's more like they are out of reach not actually forgotten.

However another problem is that if government policies continue like this as newer traders come into the ecosystem they may eventually drift away from notice. Their biggest challenge is basically how to get them and transact with them.

[hugeblack]

Xmr is just loaing value for a long time now... it is almost forgotten by traders.

Maybe something like this could trigger a XMR spike or a bull run.

this will not happen without clear policies from governments. Even a court ruling means that such cases are an overreach of OFAC’s jurisdiction, but it does not encourage the use of privacy coins or privacy protocols.

[ABCbits]

I believe this is a big step towards a more friendly regulation in the future!

I know i sound pessimistic, but i think it's small step when the reason behind reverse isn't about respecting privacy but rather how smart contract is defined.

Until then, we hold that Tornado Cash’s immutable smart contracts (the lines of privacy-enabling software code) are not the “property” of a foreign national or entity, meaning (1) they cannot be blocked under IEEPA, and (2) OFAC overstepped its congressionally defined authority.

[dkbit98]

However, Tornado Cash developer Alexey Pertsev remains in custody for money laundry charges.

This is strange in my opinion... Pertsev just created open source code and posted it in public.
If Ross Ulbricht could be release than Alexey Pertsev should also be released, but to be fair he didn't spend 11 years in prison like Ross.
Let's see what happens in next few weeks, there is always a chance few more people could get released on trump waves.

[bitmover]

However, Tornado Cash developer Alexey Pertsev remains in custody for money laundry charges.

This is strange in my opinion... Pertsev just created open source code and posted it in public.
If Ross Ulbricht could be release than Alexey Pertsev should also be released, but to be fair he didn't spend 11 years in prison like Ross.
Let's see what happens in next few weeks, there is always a chance few more people could get released on trump waves.

I am not aware of the details of Alexey. Maybe he was personally  involved in the cleaning of ilegal funds. I simple don't know  his situation.

But tornado cash may have better days ahead, with or without its main developer.

[dkbit98]

I am not aparece of the details of Alexey. Maybe he was personally  involved in the cleaning of ilegal funds. I simple don't know  his situation.

You don't have to be expert to know that Pertsev is code DEVELOPER for open source software... not a money launderer.
He didn't own centralized exchange and he didn't exchange money with anyone, he was not even charged for this.

[bitmover]

I am not aware of the details of Alexey. Maybe he was personally  involved in the cleaning of ilegal funds. I simple don't know  his situation.

You don't have to be expert to know that Pertsev is code DEVELOPER for open source software... not a money launderer.
He didn't own centralized exchange and he didn't exchange money with anyone, he was not even charged for this.

He was charged and found guilty for money laundry. Although I don't agree. that is what happened.

Judges at the ‘s-Hertogenbosch Court found Pertsev guilty of money laundering on May 14, 2024 and sentenced him to five years behind bars
https://www.msn.com/en-us/news/crime/tornado-cash-dev-alexey-pertsev-s-bail-a-crucial-step-in-getting-fair-trial-defense-says/ar-AA1yBpNu

As I said, I don't know the details of his situation, but he was not charged for making a code, but for money laundry.

This is what his defense says, which I agree

Is Pertsev responsible for the actions of Tornado Cash users?
Pertsev has argued that he should not be held liable for the actions of those who used his protocol for illicit activities. Roman Storm, a co-founder of Tornado Cash who is set to face trial in the US in April, similarly has argued that he is being “prosecuted for writing open-source code that enables private crypto transactions in a completely non-custodial manner.”
https://www.msn.com/en-us/news/crime/tornado-cash-dev-alexey-pertsev-s-bail-a-crucial-step-in-getting-fair-trial-defense-says/ar-AA1yBpNu

[Freemind]

I think this is not the first time we have seen something similar. Both Roman Storm and Alexey Pertsev are responsible for the development of the code that allows transactions to be made using the protocol, but are not responsible for the use that third parties may give to said protocol, so it could be deduced that they could spend many years in prison for making open source code available to the public. Therefore, they have developed tools with which illegal acts can be committed, but neither they have committed those acts nor have they forced anyone to commit them.

[bitmover]

I think this is not the first time we have seen something similar. Both Roman Storm and Alexey Pertsev are responsible for the development of the code that allows transactions to be made using the protocol, but are not responsible for the use that third parties may give to said protocol, so it could be deduced that they could spend many years in prison for making open source code available to the public. Therefore, they have developed tools with which illegal acts can be committed, but neither they have committed those acts nor have they forced anyone to commit them.

Yeah, that is exactly the point.

He made a tool, which can be used to do good and to commit crimes.

As he is now free, he can focus in his defense to prove he is innocent and not guilty of money laundry

[Freemind]

Yeah, that is exactly the point.

He made a tool, which can be used to do good and to commit crimes.

As he is now free, he can focus in his defense to prove he is innocent and not guilty of money laundry

Yes, he only made a tool, but the problem he may have now is dissociating one fact from another. I don't know to what extent Ross Ulbricht could be in the same circumstances when he started Silk Road, where, as we already know, buyers and sellers contacted each other to make deals. Was Ulbricht responsible for agreements made by third parties or was he only responsible for the creation and maintenance of the platform?. I think that in this case the responsibility would be different, but I couldn't say how it could be classified either.

[dkbit98]

Finally!
Justice is served and Perstev is released and free man, and we have another win for privacy.
He was always innocent or they would have to arrest and put in jail everyone who invented and created knives, axes and all other kind of tools.
Luckily Perstev didnt have to spend more than a decade in high security prison like Ross Ulbricht.

[ABCbits]

Yeah, that is exactly the point.

He made a tool, which can be used to do good and to commit crimes.

As he is now free, he can focus in his defense to prove he is innocent and not guilty of money laundry

Yes, he only made a tool, but the problem he may have now is dissociating one fact from another. I don't know to what extent Ross Ulbricht could be in the same circumstances when he started Silk Road, where, as we already know, buyers and sellers contacted each other to make deals. Was Ulbricht responsible for agreements made by third parties or was he only responsible for the creation and maintenance of the platform?. I think that in this case the responsibility would be different, but I couldn't say how it could be classified either.

IMO it's not very good comparison, since Tornado Cash is decentralized where the creator can't stop/prevent people from misuse it. Meanwhile Silk Road was centralized, where Ross could delete any listing or ban any user.