The removal of Tornado Cash’s sanctions followed a November 2024 federal appeals court ruling and a January 2025 U.S. District Court order, both concluding that Tornado’s immutable smart contracts are not the property of any foreign national, and thus cannot be sanctioned under OFAC’s current authority.

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The move comes after an appeals court ruled that the Office of Foreign Assets Control (OFAC), an agency within the Treasury, exceeded its authority by sanctioning Tornado Cash in November 2024, and a U.S. Disctrict Court in Texas ordered the sanctions to be reversed in January
The removal follows a January ruling by a US appeals court, which said the Treasury’s Office of Foreign Assets Control (OFAC) cannot sanction Tornado’s smart contracts because they are not the property of any foreign national
A federal appeals court ruled last November that OFAC couldn't sanction Tornado Cash's smart contracts because they weren't the "property" of any foreign national

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