Tornado Cash No Longer Sanctioned by U.S. Treasury
03/21/2025 22:04
This marks a significant win for the decentralized finance (DeFi) sector in the U.S.
This marks a significant win for the decentralized finance (DeFi) sector in the U.S.
The U.S. Treasury Department has removed sanctions against notorious cryptocurrency mixer Tornado Cash.
The Ethereum-based cryptocurrency mixer was initially added to the sanctions list of the Office of Foreign Assets Control (OFAC) back in August 2022. It was accused of helping North Korean hackers and other bad actors launder billions of dollars worth of ill-gotten crypto.
The cryptocurrency industry has rallied behind Tornado Cash, accusing the U.S. Treasury of overstepping its authority. Coinbase, the leading US exchange, funded a lawsuit against the Treasury filed by several users of the controversial mixer.
The 5th U.S. Circuit Court of Appeals ended up ruling against the Treasury in late 2024. A Texas-based federal court also ended up siding with the Tornado Cash users in January.
In its most recent statement, the Treasury has stressed that it remains "concerned" about state-sponsored hacking and money laundering.
At the same time, Treasury Secretary Scott Bessent has stated that digital assets present "enormous" opportunities for the American people.