U.S. Treasury Removes Sanctions Against Tornado Cash Cryptocurrency Mixer

The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) has removed Tornado Cash, a cryptocurrency mixer, from its Specially Designated Nationals (SDN) list, effectively lifting the sanctions imposed in 2022. This action allows U.S. individuals to legally engage with the platform once again.

The removal of sanctions follows a legal challenge in the case of Van Loon v. Department of the Treasury, where a federal appeals court ruled that immutable smart contracts cannot be sanctioned. Based on a review of novel legal and policy issues, the Treasury exercised its discretion to delist Tornado Cash.

Tornado Cash was previously sanctioned for allegedly facilitating the laundering of over $7 billion in cryptocurrencies since 2019, including funds stolen by North Korea's Lazarus Group. The platform enables users to obfuscate blockchain transactions, enhancing privacy but raising concerns over illicit uses.

Following the announcement, the price of Tornado Cash's native token, TORN, surged significantly, reflecting positive market sentiment toward the lifting of sanctions.

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