**Tornado Cash Delisting: Administration Exercises Discretion, Remains Committed to Combatting Cyber Threats**

In a move aimed at addressing novel legal and policy issues raised by the use of financial sanctions against evolving technology and commercial environments, the U.S. Administration has decided to delist Tornado Cash from economic sanctions. This decision comes amidst concerns over significant state-sponsored hacking and money laundering campaigns targeting digital assets for malicious purposes.

The Administration's review revealed complex legal and policy implications in using sanctions against transactions occurring within rapidly changing technological landscapes. In light of this, the Treasury Department exercised its discretion to remove the economic sanctions against Tornado Cash as reflected in the recent court filing in Van Loon v. Department of the Treasury.

Concerns Remain, but Sanctions Lifted for Now

Despite the delisting of Tornado Cash, the Treasury remains deeply concerned about the ongoing threat posed by North Korea's (DPRK) state-sponsored hacking and money laundering campaign. This malicious campaign aims to steal, acquire, and deploy digital assets for nefarious purposes, specifically targeting the Democratic People's Republic of Korea (DPRK) and the Kim regime.

The Administration emphasizes its commitment to using authorities to expose and disrupt cyber threats that exploit digital assets and the digital asset ecosystem. The Treasury will continue to monitor transactions closely for potential risks associated with malicious actors or the DPRK, urging U.S. persons to exercise caution when engaging in transactions that may present such risks.

Secretary of the Treasury Scott Bessent Weighs In

"Digital assets hold tremendous potential for innovation and value creation for the American people," stated Secretary of the Treasury Scott Bessent. "It is essential to secure the digital asset industry from abuse by North Korea and other illicit actors to establish U.S. leadership and ensure that the American people can benefit from financial innovation and inclusion."

The decision to delist Tornado Cash highlights the ongoing challenge of balancing economic sanctions with technological advancements. As the Administration continues to navigate this complex landscape, one thing remains clear: protecting U.S. citizens and national interests is paramount.

Identifying Information on Today's Action

View identifying information on today's action in Van Loon v. Department of the Treasury.