Sanctions on Tornado Cash Lifted Following Policy Review
The U.S. Treasury Department has removed economic sanctions against Tornado Cash, a cryptocurrency mixer, following a review of legal and policy issues related to evolving technology and financial environments.
The decision, outlined in a Friday filing in Van Loon v. Department of the Treasury, reflects the Administration’s discretion in addressing novel challenges posed by digital assets. Treasury officials emphasized that the move does not diminish concerns over state-sponsored hacking and money laundering, particularly by the Democratic People’s Republic of Korea (DPRK).
The Treasury remains vigilant against malicious cyber actors exploiting digital assets for illicit gains, including funding weapons of mass destruction programs. U.S. persons are advised to exercise caution when engaging in transactions that may benefit such actors.
Secretary of the Treasury Scott Bessent highlighted the dual nature of digital assets, noting their potential for innovation and the need to safeguard the industry from abuse. “Securing the digital asset industry from abuse by North Korea and other illicit actors is essential to establishing U.S. leadership and ensuring that the American people can benefit from financial innovation and inclusion,” he said.
The Treasury will continue to monitor transactions that could benefit malicious actors or the DPRK, underscoring its commitment to disrupting criminal activities in the digital asset ecosystem.
