US Government Drops Tornado Cash Appeal, Boosting TORN’s Value

The US government agreed to drop Coin Center’s appeal concerning Tornado Cash, guaranteeing future protection from sanctions. The platform’s TORN asset spiked after the announcement.

Still, it’s a little unclear what the platform’s next steps are. Several of its leaders face ongoing legal battles, even if the decentralized software remains operational.

Sanctions Protection for Tornado Cash

Tornado Cash, a popular decentralized crypto mixer, has been engaged in various legal battles for multiple years now. Although the DOJ is still actively prosecuting co-founder Roman Storm, blocking a string of his proposed trial witnesses, the firm won a breakthrough today. After much back and forth, the US government is dropping its appeal against the company:

This is the official end to our court battle over the statutory authority behind the TC sanctions. The government was not interested in moving forward and defending their dangerously overbroad interpretation of sanctions laws. Thank you again to our co-plaintiffs:…

— Peter Van Valkenburgh (@valkenburgh) July 7, 2025

Coin Center, a blockchain advocacy group, has been suing the US Treasury on behalf of Tornado Cash. The Treasury imposed sanctions on the platform for allegedly aiding North Korean hacking efforts, but crypto’s political climate has shifted. These sanctions were removed in November and have since become the centerpoint of an ongoing squabble.

According to a report from Bloomberg Law, the crux of the issue regards a Texas District Court’s ruling against Tornado Cash sanctions. Essentially, Coin Center was set on legally ensuring that the US government couldn’t use the same pretext to sanction the firm again.

After all, crypto is enjoying a good moment, but fortune can be fickle. Watchdogs have already raised the alarm that the US could sanction Tornado Cash again, prompting Coin Center’s lawsuit. Its aim has been successful, causing the TORN asset to rise over 4% today on top of a brief spike:

Nonetheless, it’s a little unclear where Tornado Cash will go from here. Although the platform is still operational, several of its main leaders face continuing legal battles. It’s a very good sign that the US sanctions aren’t coming back for the foreseeable future, but the platform has a long way to go to restore its former position.