Coinbase Alert: Treasury Eyes Tornado Cash

U.S. Treasury Dismisses Tornado Cash Sanctions Lawsuit

• The U.S. Treasury Department requested a voluntary dismissal of its lawsuit concerning sanctions on Tornado Cash.
• Paul Grewal, Chief Legal Officer at Coinbase, expressed concerns about potential future re-imposition of sanctions.
• Tornado Cash was removed from the sanctions list in March 2025 after a U.S. Appeals Court ruling in January.
• Grewal cited FBI v. Fikre as a legal precedent for challenging similar actions.
• The TORN token saw significant price fluctuations following the delisting news, peaking beyond $15.

The U.S. Treasury’s request to dismiss its lawsuit against Tornado Cash has raised concerns among industry leaders like Paul Grewal about the possibility of future sanction reinstatements, despite the crypto mixer’s recent removal from the sanctions list.