The U.S. Treasury Department has officially removed Tornado Cash, a popular cryptocurrency mixing platform, from its list of sanctioned entities. This decision comes after a legal battle in which a federal court ruled that the initial ban was unjustified.
Tornado Cash is a tool used by cryptocurrency users to make transactions more private. It works by mixing different transactions together, making it harder to trace where the money came from or where it is going. While privacy advocates see this as an important tool for financial freedom, governments have worried that criminals could use it to hide illegal activities.
The Treasury’s decision to lift sanctions on Tornado Cash is seen as a major win for those who believe in financial privacy and open-source technology. However, the government has made it clear that it remains committed to preventing cybercrime, especially from state-sponsored hacking groups.
Developer Still Blacklisted Due to North Korea Links
Even though the platform itself is no longer blacklisted, one of its developers remains on the U.S. sanctions list. Officials believe that North Korean cybercriminals have used Tornado Cash to launder stolen cryptocurrency, helping to fund activities that threaten international security.
Tornado Cash Wins Major Legal Battle Against U.S. Sanctions
North Korea has been linked to some of the largest cryptocurrency hacks in history. U.S. authorities have accused the country’s hacker groups of stealing billions of dollars from crypto platforms to fund its government operations. Because of this, the U.S. Treasury is keeping the developer on its blacklist, even though the tool he helped create is no longer banned.
In its statement, the Treasury Department emphasized that North Korea-backed hacking groups have been responsible for massive thefts of digital assets. Last year, North Korean cybercriminals were blamed for stealing $1.34 billion worth of cryptocurrency—over half of all crypto thefts recorded in 2024. Just last month, a Dubai-based exchange, Bybit, suffered a historic $1.5 billion hack, which experts suspect was carried out by North Korean hackers.
Crypto Community Reacts as TORN Token Surges
The decision to lift sanctions on Tornado Cash was celebrated by many in the cryptocurrency community. Supporters of the platform argue that privacy-focused tools like Tornado Cash should not be banned just because criminals misuse them. They believe that banning such tools would be like banning the internet because some people use it for illegal activities.
Ethereum Laundering: Hackers Move $50 Million Through Tornado Cash
Following the announcement, the price of Tornado Cash’s cryptocurrency token, TORN, skyrocketed. The token initially surged by 70% before settling at a 37.3% increase, reaching $11.71. This price movement reflects the market’s belief that the ruling has strengthened the future of privacy-focused crypto tools.
Meanwhile, U.S. officials have made it clear that they will continue working to stop illegal cryptocurrency transactions, especially those linked to hostile foreign governments. Treasury Secretary Scott Bessent stated that while digital assets offer many benefits, they must also be protected from abuse by bad actors.
The removal of Tornado Cash from the sanctions list marks a significant moment in the ongoing debate over privacy and security in the cryptocurrency world. While the platform is now free to operate, its past connections to illicit activity remain a serious concern for global regulators.
