In January 2025, the U.S. District Court for the Western District of Texas overturned sanctions against Tornado Cash by the U.S Treasury in August 2022 over allegations of involvement in money laundering

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The U.S. District Court for the Western District of Texas ruled that Tornado Cash’s immutable smart contracts could not be classified as “property” under the International Emergency Economic Powers Act (IEEPA).

A US court has overturned the sanctions against the Tornado Cash cryptocurrency mixing protocol in a decision that could signal a shift significant toward more innovation-friendly regulations for privacy-preserving technologies.