US Removes Tornado Cash Sanctions

The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) has finally lifted its sanctions on the cryptocurrency mixing tool Tornado Cash, following a federal appeals court ruling last November that cleared the way for its removal from the global blacklist.

Despite this move, which effectively delisted over 100 Ethereum addresses associated with Tornado Cash, Treasury Secretary Scott Bessent emphasized that the department remains "deeply concerned" about North Korea's ongoing digital asset theft operations. In a statement, the Treasury reiterated its commitment to combatting these threats, citing the significant state-sponsored hacking and money laundering campaign aimed at stealing, acquiring, and deploying digital assets on behalf of the Democratic People's Republic of Korea.

"The fact that we are able to lift sanctions on Tornado Cash does not mean that our concerns about North Korea's activities have diminished," Bessent said. "On the contrary, we remain vigilant in our efforts to disrupt and dismantle these operations, which pose a significant threat to national security and global financial stability."

Roman Storm, one of the co-founders of Tornado Cash, still faces a July criminal trial on charges related to his alleged development role in the project. The Treasury department's court filing earlier this week had warned that completely lifting sanctions could have "significantly disruptive consequences for national security," highlighting the ongoing risks and uncertainties associated with cryptocurrency-related activities.

The removal of Tornado Cash from the Specially Designated Nationals list marks a significant development in the ongoing saga surrounding this popular mixing tool. The decision reflects the evolving landscape of cryptocurrency regulations and the complex interplay between government oversight and technological innovation.