US Treasury argues no need for final court judgment in Tornado Cash case
March 23, 2025

%3cdiv+class%3d%22blog_post_content_wrapper+layout_list%22%3e+%0a+%3cp%3e+The+US+Treasury+Department+says+there+is+no+need+for+a+final+court+judgment+in+a+lawsuit+over+its+sanctioning+of+Tornado+Cash+after+dropping+the+crypto+mixer+from+the+sanctions+list.+%3c%2fp%3e+%0a+%3cp%3e+In+August+2022%2c+Treasury%e2%80%99s+Office+of+Foreign+Assets+Control+(OFAC)+sanctioned+Tornado+Cash+after+alleging+the+protocol+helped+launder+crypto+stolen+by+North+Korean+hacking+crew+the+Lazarus+Group+%2c+leading+to+a+number+of+Tornado+Cash+users+filing+a+lawsuit+against+the+regulator.+%3c%2fp%3e+%0a+%3cp%3e+After+a+court+ruling+in+favor+of+Tornado+Cash%2c+the+US+Treasury+dropped+the+mixer+from+its+sanctions+list+on+March+21+%2c+along+with+several+dozen+Tornado-affiliated+smart+contract+addresses+from+the+Specially+Designated+Nationals+(SDN)+list%2c+and+has+now+argued+%e2%80%9cthis+matter+is+now+moot.%e2%80%9d+%3c%2fp%3e+%0a+%3cfigure%3e+%0a++%3cimg+alt%3d%22US+Treasury+argues+no+need+for+final+court+judgment+in+Tornado+Cash+case%22+data-src%3d%22%2ffiles%2fimages%2f20250324%2fdd9236b7b960f5a118ef2f3756.png%22+pinger-seen%3d%22true%22+src%3d%22%2ffiles%2fimages%2f20250324%2fdd9236b7b960f5a118ef2f3756.png%22+title%3d%22%22+%2f%3e+%0a+%3c%2ffigure%3e+%0a+%3cdiv%3e+%0a++%3cdiv%3e+%0a+++%3cstyle%3e%0a+++.text-banner+%7b%0a++background%3a+%23fff+!important%3b%0a++margin%3a+16px+0+!important%3b%0a++cursor%3a+pointer+!important%3b%0a++text-decoration%3a+none+!important%3b%0a++display%3a+block+!important%3b%0a++color%3a+%23171a1c+!important%3b%0a%09border-top%3a+1px+solid+%23eae9e9+!important%3b%0a++border-bottom%3a+1px+solid+%23eae9e9+!important%3b%0a++padding%3a+16px+0+!important%3b%0a%7d%0a.text-banner__heading+%7b%0a++margin%3a+0+0+8px+0+!important%3b%0a++font-size%3a+0.75rem+!important%3b%0a++color%3a+%23a07303+!important%3b%0a%7d%0a.text-banner__description+%7b%0a++margin%3a+0+!important%3b%0a++font-weight%3a+700+!important%3b%0a++font-size%3a+16px+!important%3b%0a++line-height%3a+22px+!important%3b%0a++letter-spacing%3a+-0.01em+!important%3b%0a%7d%0a++%3c%2fstyle%3e+AdvertisementGet+%2410+and+unlock+275%2b+cryptocurrencies+with+the+Kraken+App.+Protected+by+world-class+security.+Offer+available+to+US+residents+who+trade+%24100+within+30+days.+Crypto+investments+carry+risk.+%0a++%3c%2fdiv%3e+%0a++%3cbutton+data-testid%3d%22close-ad-button%22%3e+Ad+%0a+++%3csvg+fill%3d%22none%22+height%3d%2214%22+viewbox%3d%220+0+14+14%22+width%3d%2214%22+xmlns%3d%22http%3a%2f%2fwww.w3.org%2f2000%2fsvg%22%3e+%0a++++%3cpath+clip-rule%3d%22evenodd%22+d%3d%22M14+6.99998C14+10.866+10.866+14+6.99998+14C3.13398+14+-3.05176e-05+10.866+-3.05176e-05+6.99998C-3.05176e-05+3.134+3.13398+0+6.99998+0C10.866+0+14+3.134+14+6.99998ZM3.32319+9.61611L5.93931+7L3.32319+4.38388C3.12793+4.18862+3.12793+3.87203+3.32319+3.67677L3.67675+3.32322C3.87201+3.12796+4.18859+3.12796+4.38385+3.32322L6.99997+5.93934L9.61609+3.32322C9.81135+3.12796+10.1279+3.12796+10.3232+3.32322L10.6767+3.67677C10.872+3.87203+10.872+4.18862+10.6767+4.38388L8.06063+7L10.6767+9.61611C10.872+9.81137+10.872+10.128+10.6767+10.3232L10.3232+10.6768C10.1279+10.872+9.81135+10.872+9.61609+10.6768L6.99997+8.06066L4.38386+10.6768C4.18859+10.872+3.87201+10.872+3.67675+10.6768L3.32319+10.3232C3.12793+10.128+3.12793+9.81137+3.32319+9.61611Z%22+fill%3d%22currentColor%22+fill-rule%3d%22evenodd%22%3e+%0a++++%3c%2fpath%3e+%0a+++%3c%2fsvg%3e+%0a+++%3c!--+--%3e+%3c%2fbutton%3e+%0a+%3c%2fdiv%3e+%0a+%3cp%3e+%e2%80%9cBecause+this+court%2c+like+all+federal+courts%2c+has+a+continuing+obligation+to+satisfy+itself+that+it+possesses+Article+III+jurisdiction+over+the+case%2c+briefing+on+mootness+is+warranted%2c%e2%80%9d+the+US+Treasury+said.+%3c%2fp%3e+%0a+%3cp%3e+However%2c+Coinbase+chief+legal+officer+Paul+Grewal+said+the+Treasury%e2%80%99s+hope+to+have+the+case+declared+moot+before+an+official+judgment+can+be+made+isn%e2%80%99t+the+correct+legal+process.+%3c%2fp%3e+%0a+%3cp%3e+%e2%80%9cAfter+grudgingly+delisting+TC%2c+they+now+claim+they%e2%80%99ve+mooted+any+need+for+a+final+court+judgment.+But+that%e2%80%99s+not+the+law%2c+and+they+know+it%2c%e2%80%9d+he+said.+%3c%2fp%3e+%0a+%3cp%3e+%e2%80%9cUnder+the+voluntary+cessation+exception%2c+a+defendant%e2%80%99s+decision+to+end+a+challenged+practice+moots+a+case+only+if+the+defendant+can+show+that+the+practice+cannot+%e2%80%98reasonably+be+expected+to+recur.%e2%80%99%e2%80%9d+%3c%2fp%3e+%0a+%3cp%3e+Grewal+pointed+to+a+2024+Supreme+Court+ruling+that+found+a+legal+complaint+from+Yonas+Fikre%2c+a+US+citizen+who+was+put+on+the+No+Fly+List%2c+is+not+moot+by+taking+him+off+the+list+because+the+ban+could+be+reinstated+again+at+a+later+date.+%3c%2fp%3e+%0a+%3cfigure%3e+%0a++%3cimg+alt%3d%22US+Treasury+argues+no+need+for+final+court+judgment+in+Tornado+Cash+case%22+data-src%3d%22%2ffiles%2fimages%2f20250324%2f3b620770f40b3ee0022793c5a4.jpeg%22+pinger-seen%3d%22true%22+src%3d%22%2ffiles%2fimages%2f20250324%2f3b620770f40b3ee0022793c5a4.jpeg%22+title%3d%22%22+%2f%3e+%0a+%3c%2ffigure%3e+%0a+%3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