In a landmark decision that sends shockwaves across the crypto landscape, a federal judge has ruled that the U.S. Treasury’s sanctions against Tornado Cash were unlawful — slamming the door shut on any future re-sanctioning.


By @FaisalCrypto007 | April 29, 2025


In a blow to the U.S. Treasury and a major win for crypto advocates, U.S. District Judge Robert Pitman of the Western District of Texas ruled Monday that the Department of the Treasury’s Office of Foreign Assets Control (OFAC) acted beyond its legal limits by sanctioning Tornado Cash — the controversial Ethereum-based privacy tool. The court has now permanently barred OFAC from enforcing those sanctions again.


This is not just a legal victory — it's a statement. Tornado Cash, a symbol of decentralization and privacy in the blockchain world, has officially broken free from the U.S. sanctions blacklist.


OFAC Overreach Called Out — Finally


Back in December 2024, a U.S. appeals court already said what much of the crypto community had been arguing all along: OFAC overstepped its authority. The agency had no business sanctioning autonomous software — namely, Tornado Cash’s smart contracts.


OFAC quietly walked back the sanctions in March 2025, delisting Tornado Cash without much fanfare. But they tried to keep the door open for future sanctions, leaving many legal observers and crypto developers uneasy.


Judge Pitman wasn’t buying it.


In his ruling, Pitman rejected OFAC’s argument that the case was moot just because the sanctions had been revoked. Instead, he sided firmly with the six plaintiffs in Van Loon v. Treasury, who used Tornado Cash and argued that their rights had been violated.



“Enough is enough,” the plaintiffs' attorneys declared in an April 21 filing, calling OFAC’s actions “a study in chaos” and accusing the agency of trying to dodge legal accountability.


Pitman echoed the sentiment, writing, “OFAC does not suggest they will not sanction Tornado Cash again,” and slammed the agency for acting based on “general policy and legal considerations” rather than the clear ruling from the Fifth Circuit.



The Bigger Fight Isn't Over


While Tornado Cash may be off OFAC’s list for now, the legal battle isn’t entirely finished.


The Department of Justice is still actively prosecuting two of the platform’s developers — Roman Storm and Roman Semenov — over charges ranging from money laundering conspiracy to violations of sanctions law. Semenov remains sanctioned, and Storm continues to fight charges that many in the crypto community see as criminalizing open-source code.


But momentum might be shifting.


Earlier this month, a memo from U.S. Deputy Attorney General Todd Blanche directed prosecutors to back off enforcement actions against crypto platforms unless there's clear intent or gross negligence. The new memo tells DOJ staff to drop cases involving crypto services like mixers or wallets when the services themselves aren't at fault for users' behavior.


Already, that policy is having ripple effects. Prosecutors in the Samourai Wallet case asked for more time to reevaluate their case under the new standards — and rumors are swirling that more dropped cases may follow.


Crypto Community Fires Back at Washington


Meanwhile, the fight has gone political.


On Monday, a coalition of crypto leaders — including the DeFi Education Fund — sent a strongly worded letter to White House AI and Crypto Czar David Sacks, urging President Trump to intervene in the Storm prosecution. The letter brands the DOJ’s actions as a "lawless campaign" and demands an end to what they say is the criminalization of software development.


The Verdict: A Pivotal Win for Crypto Freedom


Tornado Cash’s victory isn’t just about a single project — it’s about defending the rights of developers, preserving the open-source ethos, and fighting for privacy in a world that increasingly wants to track and control digital movements.


The ruling sends a loud and clear message: the government can’t sanction code — and if it tries, the courts will push back.


Whether this win marks a broader change in the U.S. government’s approach to crypto remains to be seen. But for now, Tornado Cash has weathered the storm — and come out stronger.




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