A Texas judge ruled that the U.S. Treasury Department's sanctions against Tornado Cash were unlawful, permanently enjoining the agency from enforcing them. This follows a December ruling by a U.S. appeals court, which determined that the Treasury's Office of Foreign Asset Control (OFAC) exceeded its authority in sanctioning Tornado Cash's smart contracts in 2022. Despite the ruling, the U.S. Department of Justice is still pursuing criminal charges against the developers. In March, OFAC removed Tornado Cash from its sanctions list, but concerns remained about the potential for re-sanctioning, leading the plaintiffs in the case to argue that the issue was not moot. Their lawyers criticized OFAC's handling of the matter, suggesting chaos in its legal responses.

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