The U.S. Treasury just took Tornado Cash off its sanctions list—but that doesn’t mean the legal fight is over. The crypto mixer had been blacklisted in 2022 for allegedly helping North Korea’s Lazarus Group launder funds. But after a major court win earlier this year, the Treasury quietly delisted Tornado Cash and its related smart contracts on March 21.
Now the department says the lawsuit brought by six Tornado users—supported by Coinbase (COIN)—should be dropped altogether. In a note filed to the court, Treasury claims the case is now “moot.”
Coinbase Pushes Back on Treasury’s Strategy
Coinbase’s chief legal officer Paul Grewal isn’t buying it. He argued on X that unless Treasury promises not to relist Tornado, the case still matters. “That’s not the law, and they know it,” he said. He pointed to a recent Supreme Court precedent where removing someone from a list didn’t automatically void a legal complaint.
Meanwhile, Tornado’s founders haven’t escaped the courtroom just yet. Roman Storm faces trial next month. Roman Semenov remains on the FBI’s most wanted list. And the crypto world continues to watch closely.
With projects like Tornado Cash caught in legal limbo, it’s more important than ever to keep an eye on how crypto assets are reacting. Investors can track their favorite cryptocurrencies on the TipRanks Cryptocurrency Center. Click on the image below to find out more.
