The U.S. Court of Appeals for the Fifth Circuit ruled in November 2024 that the immutable smart-contract code powering Tornado Cash cannot be treated as “property” subject to sanctions

Date

November 26, 2024

Quotes that support claims

On Oct. 30, 2023, the district court ruled that Tornado Cash qualified as an “association” whose smart contracts amounted to blocked property under the International Emergency Economic Powers Act, granting summary judgment to the Treasury. Coin Center’s November 2023 notice of appeal set up a circuit split when, on Nov. 26, 2024, the Fifth Circuit in Van Loon v. Treasury reversed a Texas court and declared that immutable smart-contract code is not property and cannot be sanctioned. Treasury chose not to petition the Supreme Court after Van Loon. Instead, on Mar. 21, it delisted every Tornado Cash address, stating that newer “targeted tools” would address illicit crypto flows more precisely.

Tags

Week 48 of 2024