The US Treasury Department removes tornado cash from OFAC sanctions list.
The Treasury has lifted sanctions against tornado cash, an Etherum -based smart contract mixer, according to a series of legal defeats and administrative issues.
“Based on the administration’s review of the novel laws and policy issues raised by the financial sanctions on financial and commercial activities in evolving technologies and legal environments, the Ministry of Treasire, Treasury V. Treasury, exercised discretion to eliminate economic sanctions on tornado cash reflected in the Monday of the Treasury.
Tornado Fast Overview of Cash Story
Tornado cash began in 2019 as a distributed protocol to improve Ether Leeum’s personal information.
In August 2022, the mixer was added to the Office of Foreign Assets Control (OFAC) list, including the sanctioned individuals and organizations. The US law enforcement agency argued that Tornado cash has promoted more than $ 7 billion in money laundering, including funds related to North Korea.
As a result, in 2023, US people who use the service and legal measures for the co -founder Roman Storm and Roman Semenov, who were accused of money laundering for more than $ 1 billion in transactions, were banned.
Six tornado cash users, supported by Coinbase, sued the Treasury and challenged sanctions.
The Texas Federal Court ruled that the smart contract could not be sanctioned in January 2025.
Today, the Treasury cited legal and technical considerations that officially lifted sanctions and evolved, but expressed concern about continuous illegal encryption activities and strengthened their intention and authority to continue sanctions.
Tension continues
Nevertheless, the Treasury has strengthened its intention to strengthen sanctions against the Democratic People’s Republic (DPRK), the source of the designated academic tension, considering the recent $ 1 billion+ hacking, claiming that it was executed by DRKP Thai’s hacking group Lazarous.
“We are deeply concerned about the important state -sponsored hacking and funding campaigns aiming to steal, acquire, and deploy digital assets for the Democratic People’s Republic (DPRK) and the Kim regime.
“The Treasury will continue to monitor a deal that can benefit malicious cyber actions or DPRKs, and Americans should pay attention before they participate in such a danger.”
The sanctions that have been released appear to be good news for financial personal information protection software developers, but it is too early to say what it means in general of the bitcoin and encryption industry or whether it will affect the upcoming court case on the samurai wallet developer.
“Digital assets are offering tremendous opportunities for US people to innovate and value,” said SCOTT BESSENT.
