In a surprising move, the US Treasury has officially removed Tornado Cash (TORN) from its sanctions list. This decision comes after years of controversy surrounding the privacy-focused crypto mixer. Following the announcement, TORN surged 75% within an hour.
Why Was Tornado Cash Sanctioned?
The US government sanctioned Tornado Cash in 2022, alleging that North Korean hackers used the platform for money laundering. Authorities blacklisted several Tornado Cash wallets and later charged co-founder Roman Semenov.
Despite these actions, legal battles continued. Last November, a US federal appeals court overturned the sanctions, sparking a 400% price surge. Another ruling from a Texas District Court supported this decision, leading to today’s official sanction removal.
US Treasury’s Official Statement
The Treasury Department cited concerns about how financial sanctions interact with emerging technologies. In a press release, officials stated:
“Based on our review of the novel legal and policy issues raised by the use of financial sanctions against evolving technology, we have exercised our discretion to remove the economic sanctions against Tornado Cash.”
However, the Treasury made it clear that the decision does not mean a complete shift in crypto enforcement.
What’s Next for Tornado Cash?
While the Trump administration has eased its stance on crypto enforcement, Tornado Cash is not in the clear yet. Future allegations of illicit activity could reverse recent progress.
For now, TORN is rallying, and the crypto industry is watching closely.
