US Court Ends Legal Challenge Against Tornado Cash Sanctions

A federal appeals court has dismissed the lawsuit between the U.S. Treasury Department and crypto advocacy group Coin Center over sanctions imposed on Tornado Cash. The case, which began nearly two years ago, was closed after both parties filed a joint motion to end the dispute.

The Treasury's Office of Foreign Assets Control (OFAC) sanctioned Tornado Cash in August 2022, alleging the platform was used to launder illicit funds. Coin Center challenged the sanctions, arguing they represented an overreach of regulatory authority. The legal standoff concluded after OFAC rescinded the sanctions in March, rendering the case moot.

"The government’s view is that OFAC’s rescission of the designation moots this appeal," the court filing stated. Coin Center noted the matter WOULD only be fully resolved after a related Texas court ruling becomes final.