The legal battle over decentralized crypto mixer Tornado Cash sanctions has officially ended after the U.S. Treasury withdrew its appeal, and the Eleventh Circuit Court of Appeals granted a joint motion to vacate the case. 

This means the government’s guidance on enforcing sanctions against Tornado Cash is now defunct, and the crypto mixer is no longer on the U.S. sanctions list.

Tornado Cash was sanctioned by the Treasury’s Office of Foreign Assets Control (OFAC) in August 2022, barring U.S. persons and companies from interacting with it. Crypto advocacy group Coin Center challenged the legality of these sanctions, arguing the Treasury exceeded its authority.

This story is an excerpt from the Unchained Daily newsletter.

“This is the official end to our court battle over the statutory authority behind the TC sanctions,” said Coin Center executive director Peter Van Valkenburgh in a Monday X post.

“The government was not interested in moving forward and defending their dangerously overbroad interpretation of sanctions laws.”

Tornado Cash’s native token TORN surged 14% to an intraday high of $10.55 immediately after the news, but has since retraced to around $9.43.