Tornado Cash Is No Longer Sanctioned by the US Treasury
The US Treasury has lifted sanctions on the coin mixer Tornado Cash and multiple related crypto addresses, according to a March 21 update.
The change removes 90 Ethereum addresses from the Office of Foreign Assets Control’s (OFAC) Specially Designated Nationals List.
The Treasury wrote that the decision is based on a review of legal and policy issues explained in its Monday filing in Van Loon v. Department of the Treasury.
In December, the federal appeals court responsible for the case ruled that Tornado Cash’s underlying smart contracts are not owned or controlled by any individual or entity and therefore are not property. As such, OFAC exceeded its authority over property as defined in the International Emergency Economic Powers Act (IEEPA).
However, that decision did not immediately result in sanctions being lifted, and the Treasury’s latest statement indicates that it lifted the sanctions at its discretion.
Concerns Over North Korea
When the Treasury sanctioned Tornado Cash in August 2022, it justified the action by citing the platform’s use in crypto laundering, including by North Korean groups.
The Treasury and OFAC wrote in their latest press release that they “remain deeply concerned” about North Korea’s state-sponsored hacking and digital currency money laundering activities. The U.S. agencies say that they intend to continue monitoring transactions and enforcing sanctions against North Korea.
Treasury Secretary Scott Bessent noted that digital assets “present enormous opportunities for innovation and value creation for the American people” but said that protecting the digital asset industry from abuse is essential to this goal.
Tornado Cash’s token (TORN) saw its price rise significantly alongside the sanctions removal, rising from a low of $7.75 to a high of $15.04 on March 21.
Developers Still Targeted By Authorities
The Treasury and OFAC continue to impose sanctions on Tornado Cash developer Roman Semenov and several of his cryptocurrency addresses.
The U.S. is also pursuing criminal charges against developers. Semenov faced criminal charges advanced by the U.S. Department of Justice (DOJ) in August 2023 but was at large at the time. The DOJ simultaneously charged Tornado Cash co-developer Roman Storm, whose trial is set to begin on April 14, 2025.
Storm and Semenov each face a maximum of 45 years in prison for various charges related to Tornado Cash’s operation and misuse.
Another Tornado Cash developer, Alexey Pertsev, was convicted in the Netherlands and sentenced to 64 months in prison in May 2024. He received an early release this February on the condition that he is electronically monitored.
