The American authorities change course on the cryptocurrency mixer while concerns about illicit actors’ activities remain.
The United States Department of the Treasury has officially removed economic sanctions against Tornado Cash, as communicated on March 21 in a statement. The decision represents a change of direction in the American government’s position toward the cryptocurrency mixing service, originally sanctioned for alleged links to illicit activities.
Despite lifting the sanctions, American authorities have emphasized continued concern regarding state-sponsored hacking activities, particularly those originating from North Korea. According to the statement, the Treasury remains determined to use its powers to counter malicious cyber actors who exploit digital assets and their ecosystem for illicit profits, with particular attention to “the regime’s ability to fund its weapons of mass destruction and ballistic missile programs.”
Treasury Secretary Scott Bessent stated:
“Digital assets offer enormous opportunities for innovation and value creation for the American people. Protecting the digital asset industry from abuses by North Korea and other illicit actors is essential to establish United States leadership and ensure that American citizens can benefit from financial innovation and inclusion.”
The removal from the blacklist follows a November 26, 2024 ruling by the United States Fifth Circuit Court of Appeals, which determined that OFAC exceeded its authority in sanctioning Tornado Cash‘s immutable smart contracts. According to the court, such smart contracts cannot be considered “property” under the International Emergency Economic Powers Act.
Despite the platform’s removal from the blacklist, Tornado Cash founders Roman Storm and Roman Semenov continue to face legal issues.
