Tornado Cash Sanctions Lifted in the U.S.
Breaking News: Tornado Cash Takes Over Crypto World
The US Treasury Department has made a shocking move, unfreezing Tornado Cash, a high-profile cryptocurrency mixing service, from their Specially Designated Nationals (SDN) List. This unexpected shift raises questions about the future of cryptocurrency regulations.
Tornado Cash Unshackled after Legal Setbacks
The Office of Foreign Assets Control (OFAC), the financial branch of the Treasury responsible for enforcing sanctions, made the announcement on a Friday. This unexpected move marks a significant turn in the three-year-long saga between the US government and Tornado Cash.
The government initially accused Tornado Cash of facilitating over $7 billion in illicit activities, including funds linked to North Korea's notorious Lazarus Group. However, recent court rulings have challenged the Treasury's authority.
A New Lease on Life for Tornado Cash
After reviewing "novel legal and policy issues" and confronting several legal setbacks, the Treasury has decided to lift the sanctions imposed on Tornado Cash in 2022. Although the government remains concerned about state-sponsored cybercrime and financial misconduct, they claim this decision is an attempt to navigate the emerging complexities of digital assets and the digital age.
The removal of Tornado Cash from the SDN list has sparked a wave of excitement in the cryptocurrency community. The price of Tornado Cash's native TORN token surged over 60%, reaching an all-time high of over $15.
Security Concerns Persist for the Reborn Tornado Cash
Despite the lifting of sanctions, security concerns remain. Blockchain investigator ZachXBT revealed that Tornado Cash's main user interface still appears compromised. Hackers had previously inserted malicious code into the user interface, potentially allowing them to drain deposits from unsuspecting users.
The founders of Tornado Cash, Roman Semenov and Roman Storm, still face legal challenges. Semenov remains on the SDN list, though the "cyber-enabled activities" tag has been removed. Both founders were indicted in August 2023 for alleged money laundering and sanctions violations.
OFAC, TORN, and Tornado Cash—A New Chapter Awaits
With this significant policy reversal, the cryptocurrency world is eagerly watching the developments between Tornado Cash, the OFAC, and the U.S. Treasury Department. As the digital asset market continues to evolve, so too will the regulations and challenges that come with it.
Stay tuned for more updates as this story continues to unfold.
By your favorite Coincu writer, Harold. As a financial journalist with a passion for demystifying the financial world, I've dedicated years to breaking down complex financial topics for readers like you. From exploring the latest trends in venture capital to diving deep into the nuances of digital assets, I'm here to bring you the most current and interesting stories in finance.
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[ref>https://cointelegraph.com/news/tornado-cash-lifting-of-us-sanctions-sets-crypto- privacy-precedenthttps://www.reuters.com/world/us/teasury-officially-drops-sanctions-on-decentralized-crypto-mixer-tornado-cash-2025-04-01/https://www.zerohedge.com/crypto/us-court-rules-against-ofacs-control-tornado-cashhttps://techcrunch.com/2025/04/02/us-court-rules-in-favor-of-tornado-cash-altcoin/https://cointelegraph.com/news/us-court-rules-against-treasury-departments-tornado-cash-sanctionshttps://www.coindesk.com/policy/2025/04/01/treasury-unfreezes-tornado-cash-cryptocurrency-mixing-service/
- In an unexpected turn of events, Tornado Cash, a controversial cryptocurrency mixing service, has been unfrozen by the US Treasury Department from their Specially Designated Nationals (SDN) List following a series of legal setbacks.
- The Office of Foreign Assets Control (OFAC) announced the reversal on a Friday, marking a significant shift in the three-year-long saga between the US government and Tornado Cash.
- After reviewing "novel legal and policy issues" and facing several legal setbacks, the Treasury has lifted the sanctions imposed on Tornado Cash in 2022,aiming to navigate the emerging complexities of digital assets and the digital age.
- The removal of Tornado Cash from the SDN list has sparked excitement in the cryptocurrency community, causing the price of Tornado Cash's native TORN token to surge over 60%, reaching an all-time high of over $15.
