The U.S. Treasury Department acted outside its authority when it sanctioned cryptocurrency mixer Tornado Cash in 2022 and accused it of helping launder over $7 billion for North Korean hackers and other malicious cyber actors,

A federal appellate court ruled that privacy tools built on the Ethereum blockchain, known as Tornado Cash, cannot be subject to the sanctions imposed by the Treasury Department. Why it matters: The ruling advances cryptocurrency law by finding that certain kinds of smart contracts are not property.

Tornado Cash ensures anonymity by allowing token withdrawals from one address while accepting token deposits from another.