U.S. Treasury Lifts Sanctions on Tornado Cash Cryptocurrency Mixer

On March 21, 2025, the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) announced the removal of Tornado Cash, a cryptocurrency mixer, from its Specially Designated Nationals (SDN) list. This action effectively lifts the sanctions previously imposed on the platform and associated cryptocurrency addresses.

The decision follows a legal review prompted by the case Van Loon v. Department of the Treasury, where a federal court ruled that sanctions against Tornado Cash's immutable smart contracts exceeded OFAC's statutory authority. The Treasury stated that it has "exercised its discretion to remove the economic sanctions against Tornado Cash."

Tornado Cash had been sanctioned in 2022 over allegations that it facilitated money laundering activities, including those linked to North Korea's Lazarus Group. The lifting of sanctions allows U.S. individuals to legally engage with the platform, though the Treasury emphasized its continued commitment to combating illicit activities and securing the digital asset industry from abuse.

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