07.07.2025 18:01
The United States Treasury Department has abandoned its appeal against sanctions imposed on the cryptocurrency mixer Tornado Cash, bringing an end to a significant legal challenge. This decision, filed with the Eleventh Circuit Court of Appeals, resulted in the appellate court vacating the lower court's judgment and ordering its dismissal. Consequently, the government's previously issued guidance regarding the enforcement of these sanctions is now void.
Following a joint agreement between the Treasury Department and Coin Center, as reported by Bloomberg Law, the case was effectively terminated. The court's ruling, evident within its opening paragraphs, clearly indicates the Treasury's decision to withdraw from the legal battle. While oral arguments had been presented on November 19th, a ruling was never issued. Instead, a mutual motion to dismiss the case was filed and subsequently granted. The sanctions against the Russian-developed privacy tool, Tornado Cash, are therefore no longer in effect.
Despite the resolution of the civil case against Tornado Cash, criminal proceedings against its developer, Alexey Pertsev (referred to as Storm in the text), continue unabated. These charges, brought by the Department of Justice, are significantly more serious than those pursued by the Securities and Exchange Commission. Pertsev’s trial is scheduled to commence on July 14th.
The Department of Justice alleges that Pertsev, along with co-developer Roman Semenov, facilitated the laundering of over $1 billion in cryptocurrency, some of which allegedly originated from the Lazarus Group, a North Korean hacking organization notorious for large-scale cryptocurrency thefts. Interestingly, despite the severity of these accusations, US courts have demonstrated increasing receptiveness to the defense strategy employed by Pertsev and his legal team. Supported by Coinbase and the Ethereum Foundation, Pertsev's defense centers on the argument that the government is inappropriately targeting software code itself, rather than specific actions taken with it. This central argument, initially considered a long shot, is now gaining significant traction. A separate civil case is also underway, though details are not provided.
