A U.S. court has recently overturned the sanctions on Tornado Cash, a significant move for the crypto world.
In Singapore, the High Court has approved a restructuring plan for the crypto exchange WazirX. This decision allows WazirX to repay customers after a hack that stole $235 million back in July 2024. Users could potentially recover up to 80% of their account balances.
The company will start a voting process, which should wrap up in about three months. If most users support the plan, it will go into action. This means the exchange can distribute liquid assets to users based on their claims, including profits from the recent bull market.
The Singapore court favored restructuring over liquidation. They believe a quick resolution and fund distribution will benefit users the most.
Meanwhile, in another important case for privacy tech in crypto, the U.S. District Court for the Western District of Texas has reversed the U.S. Treasury’s sanctions against Tornado Cash.
These sanctions were imposed in 2022, accusing Tornado Cash of helping North Korea’s Lazarus Group launder money. This group is linked to over $455 million in stolen crypto.
Even with the sanctions lifted, Tornado Cash developer Alexey Pertsev remains in police custody facing money laundering charges.
On another front, crypto exchange Coinbase filed a request with the U.S. Second Circuit Court of Appeals. They want the court to rule that crypto trades are not securities. This comes as Coinbase fights a lawsuit from the Securities and Exchange Commission (SEC).
Coinbase stressed that it’s crucial to clarify whether secondary market transactions are investment contracts. They argue that this case could set clear rules for the industry.
Without a ruling, market participants could face inconsistent regulations in different courts.
In a separate issue, the U.S. Department of Government Efficiency (DOGE), created by an executive order from President Donald Trump, is now dealing with several legal challenges.
Led by billionaire Elon Musk, DOGE faces lawsuits from Citizens for Responsibility and Ethics, a watchdog group, and Public Citizen, a consumer protection organization. Additionally, the Center for Biological Diversity has also filed a suit against DOGE.
Citizens for Responsibility and Ethics seeks a court ruling to declare DOGE's establishment unlawful. They want the court to ensure DOGE complies with transparency, ethics, and equal representation as required by the Federal Advisory Committee Act.
Lastly, the SEC has achieved a partial victory against Kraken. A federal judge dismissed Kraken's argument that Congress did not grant the SEC authority over digital assets.
Kraken's defense, known as the major questions doctrine, argues that government agencies can't use powers not explicitly given to them by Congress. Other crypto companies like Coinbase, Ripple, and Binance have also used this defense in their cases against the SEC.
In his ruling, California Federal Judge William Orrick stated that the SEC was not claiming powers beyond what Congress authorized.