US Treasury Department Officially Removes Tornado Cash From SDN List; TORN Token Jumps Over 60% in Minutes

The US Treasury Department has today delisted the Tornado Cash crypto mixing service from its Specially Designated Nationals (SDN) list

The U.S. Treasury Department has delisted Tornado Cash from its Specially Designated Nationals (SDN) list, as announced in a recent statement.

The change in status follows a decision by the U.S. Court of Appeals for the Fifth Circuit, which ruled in November 2024 that immutable smart contracts cannot be considered “property” under the International Emergency Economic Powers Act (50 U.S. Code 1701 et seq.).

The court's ruling stemmed from the Treasury's sanctions on Tornado Cash, imposed in August 2022. Following the sanctions, which also targeted several individuals and entities allegedly linked to North Korea, the administration began the process of delisting Tornado Cash on March 18, 2025.

The Treasury's decision to sanction Tornado Cash sparked controversy within the crypto industry.

Coinbase's Chief Legal Officer, Paul Grewal, penned a blog post earlier this month criticizing the Treasury for partially complying with the court order. Grewal and other industry leaders argued that the move undermined Congress's intent in enacting the sanctions law.

The Treasury's actions came after the Fifth Circuit Court affirmed a lower court ruling that rejected OFAC's designation of Tornado Cash's smart contracts. The court found that immutable, self-executing code does not qualify as "property."

The case arose when the Treasury imposed sanctions on Tornado Cash for allegedly facilitating the laundering of billions of dollars in cryptocurrency. However, the court limited the scope of sanctions under current U.S. law, focusing on the technical nature of smart contracts.

Following the announcement, the TORN token saw a rapid price surge of over 50% within minutes, as reported by CoinGecko. The increase in price was accompanied by a significant spike in trading activity on major exchanges. Notably, the 24-hour trading volume for the TORN token soared by 950%, reaching $1.79 million.

As the Treasury continues to update its SDN list, it remains to be seen what impact this decision will have on the broader crypto industry.