US government abandons Tornado Cash appeal after policy reversal

The US Treasury Department has ended its legal appeal regarding Tornado Cash sanctions enforcement following a district court ruling that deemed the original mandate unenforceable, according to a new report from Bloomberg Laws.

Coin Center and federal authorities jointly filed for dismissal of their appeal before the Eleventh Circuit Court, which was pending a decision. The Eleventh Circuit granted the motion today, vacating the previous judgment and ordering the case’s dismissal.

The appeal had centered on whether the Treasury’s Office of Foreign Assets Control (OFAC) exceeded its authority by imposing sanctions on Tornado Cash, a Russian-developed crypto mixing software. While arguments were presented in November 2024, the court never issued a ruling as the government’s policy reversal made it unnecessary.

As a result of the government’s decision, Tornado Cash’s sanctions guidance will no longer be enforced.