Wu said that according to ConsenSys lawyer Bill Hughes, the U.S. Court of Appeals ruled that the U.S. Treasury's sanctions against Tornado Cash's immutable smart contracts exceeded its authority. The court found that these smart contracts, having become immutable code through a 'trusted setup ceremony', cannot be owned by any entity, do not meet the definition of 'property', and do not fall under the category of 'services'. Despite the Treasury's attempts to impose sanctions, these contracts can still operate freely on the blockchain, and any user, including those subject to sanctions, can access them. The ruling clarified the boundaries of the Treasury and its Office of Foreign Assets Control (OFAC) in the regulation of digital assets, but it does not mean that other aspects of Tornado Cash are not subject to sanctions. The focal point of the dispute lies in the smart contracts without an administrator key.