Tornado Cash Sanctions Lifted by US Treasury Following Legal Reassessment
The US Treasury Department has decided to remove Tornado Cash from its list of sanctioned entities, following a review of emerging legal and technological concerns.
The Office of Foreign Assets Control (OFAC) acknowledged that the sanctions were initially imposed in response to the increasing use of the crypto mixer in illicit activities, particularly in relation to state-sponsored cybercrime from North Korea.
Despite the removal of Tornado Cash from the Specially Designated Nationals List, OFAC maintains that its concerns about the platform’s role in laundering stolen digital assets remain significant. The decision to lift the sanctions came after a reassessment of the legal and policy implications related to financial activities in the rapidly evolving technology sector.
READ MORE: ECB Official Warns U.S. Crypto Policies Could Threaten Global Financial Stability
While the sanctions were lifted for the platform itself, restrictions still apply to Tornado Cash’s founder, Roman Semenov. Crypto investigator ZachXBT cautioned users about accessing the platform, noting that the frontend remains compromised due to a past hacking incident where malicious code was injected into the platform’s interface, resulting in stolen funds.
The original sanctions were levied in 2022, with the Treasury accusing Tornado Cash of facilitating the laundering of approximately $7 billion in digital assets. However, US courts recently ruled that the Treasury overstepped its authority in imposing these restrictions, a key factor in the decision to remove the mixer from the sanctions list.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
