Just In: US Government And Coin Center Agree To Drop Tornado Cash Lawsuit

Nearly five months after the US Treasury Department lifted sanctions against Tornado Cash, the federal agency has dropped its appeal against the crypto mixer. The latest play formally brings the long-drawn Tornado Cash lawsuit to a close, but key developer Roman Storm still faces a stiff legal battle.

Coin Center And The Treasury End Tornado Cash Lawsuit

According to a Bloomberg Law report, the US Treasury Department has dropped its appeal against cryptocurrency mixer Tornado Cash. The Treasury Department agreed with Washington, D.C.-based advocacy group Coin Center to shutter the appeal against the crypto mixer.

Per the report, the United States Court of Appeals for the Eleventh Circuit granted a joint motion by the parties to dismiss the appeal. Court filings indicate that parties have agreed that the appeal is moot and that a court decision on the matter will have no practical effect.

Coin Center Executive Director Peter Van Valkenburgh revealed via X that the joint motion effectively brings the case to a close.

“This is the official end to our court battle over the statutory authority behind the TC sanctions,” said Valkenburgh. “The government was not interested in moving forward and defending their dangerously overbroad interpretation of sanctions laws.”

Back in April, Coinbase CLO Paul Grewal hailed a US court for vacating its judgment against Tornado Cash, prohibiting OFAC from imposing sanctions on the mixer. At the time, the court ruled that OFAC’s decision to impose sanctions against Tornado Cash violated the provisions of the Administrative Procedure Act. The court subsequently barred OFAC from imposing similar sanctions against Tornado.

Co-founder Roman Storm Still Faces Legal Battle

Despite the legal win scored by Tornado Cash, its co-founder, Roman Storm, is still within regulatory cross-hairs. Storm’s trial, bordering on charges of conspiracy to commit money laundering and sanctions evasion, will begin next week in New York.

The Tornado Cash co-founder is staring at a 45-year jail sentence if found guilty, with prosecutors dropping the charge of conspiracy to operate an unlicensed money transmitter business. Currently, the TORN price is up nearly 3% following the legal victory, trading at $9.44, while daily trading volume has surged 154%. Previously, TORN has spiked 180% in a day after a US Appeals Court lifted sanctions against Tornado Cash.

The decision to ditch its appeal follows a softening regulatory landscape for digital assets in the US. Ripple and the SEC are tipped to drop their appeals in the long-drawn Ripple-SEC case. Furthermore, the ecosystem is bracing for a raft of legislation in the coming weeks as the President Trump administration signals support.