Appeals court tosses sanctions on Tornado Cash crypto mixer

The Fifth Circuit Court of Appeals ruled that the U.S. Treasury exceeded its legal authority by sanctioning Tornado Cash under the IEEPA, determining that immutable smart contracts do not constitute "property" subject to OFAC sanctions. The opinion noted Tornado Cash was accused of facilitating over $7 billion in laundering, including funds tied to North Korea’s Lazarus Group, but concluded the sanctions overstepped statutory bounds; the decision overturns a prior Texas ruling and returns the case for further proceedings while related criminal prosecutions and appeals continue.