Usa: STOP the sanctions on Tornado Cash. And TORN flies

By Davide Grammatica

According to a US court, the Office of Foreign Assets Control did not have the authority to sanction Tornado Cash

Tornado Cash's revenge

The US Treasury Department has lifted the sanctions on the mixer Tornado Cash.

As we reported in the past, the famous mixer had been accused of being a direct participant in crimes perpetrated by some users through the platform, and for this reason it suffered heavy sanctions. Today, however, the US authorities have backtracked, certifying that the Office of Foreign Assets Control (OFAC) did not have the authority to sanction Tornado Cash.

One of the main accusations concerned the facilitation of certain crimes committed by well-known North Korean computer hackers (the Lazarus Group), who had used the platform to launder money illegally.

OFAC first sanctioned Tornado Cash in August 2022, in a joint operation between the United States, Japan and South Korea, which had ascertained that North Korea was using the platform to illegally finance the production of ballistic missiles and other weapons of mass destruction.

A federal court in Texas had already ruled last January that the platform could not be subject to sanctions. Tornado Cash is in fact autonomous software that works independently of any central authority. The OFAC recognized this today officially, creating an important precedent in the approach of US regulations to protocols of this type.

TORN's reaction

Meanwhile, TORN, the native token of the protocol, has recorded a +70% increase in a few hours, and the crypto community seems to have welcomed the news. After all, mixers are still seen as a fundamental tool in the DeFi ecosystem, guaranteeing the principle of privacy among users.

In any case, the Treasury has reiterated its commitment to disrupt these malicious cyber activities, and has not shied away from applying new sanctions to North Korea. “Digital assets present tremendous opportunities for innovation and value creation for the American people,” said Scott Bessent, US Treasury Secretary, in a statement. “Protecting the digital assets sector from the abuses of North Korea and other illicit actors is essential to establishing US leadership and ensuring that the American people can benefit from innovation and financial inclusion.”