The United States Treasury Department has lifted the sanctions imposed on Tornado Cash and removed it from its global blacklist. The US had sanctioned the crypto mixing tool for money laundering.
Over 100 Ethereum addresses are also being removed from the Specially Designated Nationals List, used by the Treasury to maintain its blacklist.
US Lifts Tornado Cash Sanctions
The US lifted the sanctions against the crypto mixer on March 21, 2025, amid broader discussions about financial privacy, innovation, and the effectiveness of sanctions in curbing illicit economic activity. Tornado Cash has been accused of helping the dreaded Lazarus Group, a North Korean hacking entity. The group was involved in the recent Bybit hack, draining over $1.4 billion from the exchange. However, while lifting the sanctions, the Trump administration has maintained it will continue its campaign against money laundering.
“JUST IN: US Government lifts Tornado Cash sanctions and ban.”
The decision has also sparked discussions about finding a balance between financial privacy and innovation and the potential risks of enabling bad actors. Treasury Secretary Scott Bessent stated,
“Digital assets present enormous opportunities for innovation and value creation for the American people.”
The sanctions meant no US citizen or individual doing business with the US could engage with Tornado Cash. However, a federal appeals court ruled last November that OFAC could not sanction Tornado Cash’s smart contracts because they were not the “property” of any foreign national. The US Department of Treasury stated in a press release,
“We remain deeply concerned about the significant state-sponsored hacking and money laundering campaign aimed at stealing, acquiring, and deploying digital assets for the Democratic Republic of Korea and the Kim regime.”
ETH Addresses Removed
Additionally, another update from the OFAC has listed over 100 Ethereum addresses that are being being removed from the Specially Designated Nationals List, the record used by the Treasury to maintain its blacklist. Despite lifting the sanctions on Tornado Cash, Roman Storm, one of the founders of the mixing service, will still face a criminal trial in July over his alleged role in developing the smart contracts and protocols. Another developer has also been charged but is yet to be arrested.
Following the November ruling, Storm’s lawyers have filed a motion for the court to reconsider its earlier decision to deny the dismissal of charges against him. The motion was dismissed in February when Judge Katherine Polk Failla of the Southern District of New York stated that “whether or not Tornado Cash itself was subject to sanctions does not affect the sanctions Defendant allegedly conspired to violate.” Meanwhile, Storm’s lawyer said he was pleased to see the sanctions against Tornado Cash removed, adding,
“Now, the SDNY prosecutors must similarly reconsider their unfortunate decision to charge our client and dismiss the case against him.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
