US Government drops appeal in Tornado Cash lawsuit

Coin Center Inc. and the US Government have agreed to drop an appeal involving the use of certain economic sanctions against Tornado Cash. The lawsuit against Tornado Cash was expected to eventually drop after the US Treasury Department removed Tornado Cash’s sanctions earlier this year.

JUST IN: ?? US government drops appeal in Tornado Cash lawsuit.

— Watcher.Guru (@WatcherGuru) July 7, 2025 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. As a result of the government’s decision, Tornado Cash’s sanctions guidance will no longer be enforced, and the lawsuit is fully dropped, according to a Bloomberg report.

Tornado Cash has long been accused of helping the Lazarus Group, a North Korean hacking entity. The group was reported to be behind a $1.4 billion high-profile theft that hit cryptocurrency exchange Bybit some time ago. However, the current administration has maintained its commitment to combating similar money laundering campaigns. As a result of that changed mission, and a new crypto-friendly US administration, Tornado Cash appears to be getting a second chance.

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In addition, Tornado Cash developer Alexey Pertsev was released from jail earlier this year. Pertsev is in the process of appealing his $1 billion money laundering conviction related to Tornado Cash. He received a five-year prison sentence from a Dutch court last May for money laundering in connection with Tornado Cash.