TORN Surges as US Treasury Removes Tornado Cash from Sanctions
On Friday, the US Treasury removed Tornado Cash addresses from the OFAC sanctions list, triggering a significant market reaction.
TORN Jumps 73% Following Treasury Decision
The move could have implications for the ongoing DOJ case against Tornado Cash’s developers. In response to the news, TORN surged over 70%, reaching $15, with weekly gains exceeding 100%.
OFAC Deletes Tornado Cash from Sanctions List
According to an update on the OFAC website, Tornado Cash addresses have been removed from the SDN list, lifting US restrictions on the crypto mixer.
“We have exercised our discretion to remove economic sanctions against Tornado Cash, as reflected in Treasury’s Monday filing in Van Loon v. Department of the Treasury,” the US Treasury announced.
Despite this decision, concerns persist over money laundering tactics used by North Korea’s Lazarus Group.
Background: Tornado Cash and Sanctions
OFAC sanctioned Tornado Cash in 2022, alleging that the protocol facilitated the laundering of $7 billion in digital assets, including over $1 billion linked to the Lazarus Group.
In 2023, the DOJ charged Tornado Cash co-founders Roman Storm and Roman Semenov for aiding illicit transactions. Meanwhile, co-founder Alexey Pertsev was convicted in the Netherlands for laundering $1.2 billion in crypto and sentenced to 64 months in prison in May 2024.
Impact on Crypto and Privacy Tokens
The delisting of Tornado Cash could influence the DOJ’s case against its founders and signals a shift in the US approach to crypto privacy. The decision also benefits privacy tokens and the DeFi sector, potentially driving further gains in the coming days.
TORN’s rally was fueled in part by its $57 million market cap, making it highly responsive to even minor buy orders.
Will This Spark a Revival for Privacy Tokens?
The removal of Tornado Cash from OFAC’s sanction list may provide a bullish outlook for privacy-focused cryptocurrencies.
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