Here, six Tornado Cash users challenged the Office of Foreign Assets Control (OFAC)’s decision to sanction Tornado Cash smart contracts under the IEEPA, arguing the action unlawfully targets autonomous software and exceeds statutory authority.
On April 12, 2023, DEF filed an amicus brief supporting plaintiffs’ motion for partial summary judgment, contending that OFAC’s sanctions on Tornado Cash lack a statutory basis and overextend the agency’s authority. Additionally, DEF emphasized that sanctioning immutable smart contracts punishes a neutral tool rather than any individual or entity misusing it, creating a dangerous precedent for decentralized technologies. On November 20, 2023, DEF filed a second brief in the Fifth Circuit supporting reversal.
Status: DeFi Victory