Bybit Insights: US Government Drops Tornado Cash Appeal, Signaling Crypto Regulatory Shift

In a significant development for the cryptocurrency industry, the US government and Coin Center Inc. have jointly moved to dismiss an appeal involving sanctions against Tornado Cash, a cryptocurrency mixer. This follows the Treasury Department's earlier decision to lift sanctions on the privacy tool, marking a notable shift in regulatory posture under the new administration. The Eleventh Circuit Court vacated its previous judgment and dismissed the case entirely. This move is seen as a positive signal for the crypto market, particularly for privacy-focused tools and platforms like Bybit, which prioritize user security and financial sovereignty. The decision reflects a growing recognition of the importance of privacy in digital asset transactions and could pave the way for more balanced regulatory approaches in the future.

US Government Drops Appeal in Tornado Cash Lawsuit, Signaling Regulatory Shift

The US government and Coin Center Inc. have jointly moved to dismiss an appeal involving sanctions against cryptocurrency mixer Tornado Cash. This follows the Treasury Department's earlier decision to lift sanctions on the privacy tool, marking a notable shift in regulatory posture under the new administration.

The Eleventh Circuit Court vacated its previous judgment and dismissed the case entirely. Tornado Cash had faced allegations of facilitating money laundering for North Korea's Lazarus Group, which was implicated in a $1.4 billion hack targeting Bybit exchange. The resolution suggests evolving approaches to crypto regulation amid growing institutional acceptance.

Developer Alexey Pertsev's release from jail earlier this year and his ongoing appeal process further underscore the changing landscape. As regulatory clarity improves, privacy-focused protocols may gain renewed traction in decentralized finance ecosystems.

Bybit Commits $1.1M to Blockchain Social Impact Initiatives at ETHCC Cannes

Bybit, the world's second-largest crypto exchange by volume, made waves at the Blockchain4Good Summit 2025 with seven-figure commitments to social impact projects. The exchange allocated $1 million to EthicHub's blockchain-based coffee farming initiative and $100,000 for Web3 education scholarships.

The Cannes event, co-hosted by the Blockchain for Good Alliance and Celo EU, brought together 150 innovators focused on sustainable development through blockchain technology. Bybit CEO Ben Zhou emphasized the company's philosophy in his keynote: "We believe blockchain should do more than drive financial gains—it should change lives."

The EthicHub investment will expand peer-to-peer lending for smallholder coffee farmers, while the scholarship fund targets emerging builders in the Web3 space. These moves signal Bybit's strategic pivot toward measurable social impact alongside its Core exchange operations.