In this episode of the Unchained podcast, the hosts delve into a groundbreaking court decision that overturned the Treasury Department's sanctions against Tornado Cash. A federal appeals court ruled that the Office of Foreign Assets Control (OFAC) exceeded its authority by sanctioning open-source, immutable code, stating that such code does not qualify as "property" under the law and, therefore, cannot be sanctioned. Coinbase played a pivotal role in funding the lawsuit, underscoring the consequences of regulatory overreach on innocent users. This ruling sets an important precedent, curbing OFAC's power and highlighting the necessity of targeting actual wrongdoers instead of neutral tools. The government now has 45 days to decide on an appeal, and the episode also explores the ruling's potential implications for other related cases.
