PANews reported on January 22 that according to Bitcoin Magazine, the U.S. Court of Appeals for the Fifth Circuit overturned the Texas District Court's decision on the Tornado Cash sanctions and sent the case back to the original court for retrial.

Additionally, as reported by Bitcoin.com, the appeals court held that the Treasury Department’s Office of Foreign Assets Control (OFAC) exceeded its jurisdiction by sanctioning Tornado Cash for its immutable smart contracts, which by their nature cannot be owned or controlled by any one party.