US Treasury Lifts Tornado Cash Sanctions, Citing Innovation Value – The Shib Daily
The U.S. Department of the Treasury has lifted sanctions on Tornado Cash-linked addresses, rolling back restrictions on the crypto mixing service after legal setbacks and regulatory hurdles.
The Office of Foreign Assets Control (OFAC), the agency overseeing sanctions enforcement, made the decision to remove Tornado Cash-linked addresses from the Specially Designated Nationals (SDN) list.
“Based on the Administration’s review of the novel legal and policy issues raised by use of financial sanctions against financial and commercial activity occurring within evolving technology and legal environments, we have exercised our discretion to remove the economic sanctions against Tornado Cash as reflected in Treasury’s Monday filing in Van Loon v. Department of the Treasury,” the Treasury Department stated.
However, the agency reiterated its concerns over ongoing illicit cryptocurrency activities and emphasized its commitment to enforcing sanctions against North Korea.
A Fifth Circuit judge ruled in November 2024 that automated software does not qualify as property, making it ineligible for sanctions imposed by OFAC.
In 2022, the OFAC sanctioned the crypto mixing service, alleging it played a key role in laundering illicit funds. Among its users was the notorious North Korean hacking group Lazarus, which reportedly funneled millions in stolen cryptocurrency through the platform to obscure the origins of their illicit gains.
The crypto community responded positively to the development. Paul Grewal, Chief Legal Officer of Coinbase, announced the development in a post on X. Coinbase, a major cryptocurrency exchange, played a key role in funding Tornado Cash’s legal defense. “Tornado Cash appears to have been delisted. Game over,” Grewal wrote.
Despite this legal victory, Tornado Cash co-founder Roman Storm remains entangled in a criminal case set for trial in July. Prosecutors allege that Storm played a direct role in developing the platform’s protocols and smart contracts, which facilitated illicit transactions.
His defense team sought to have the charges dismissed, citing the November 2024 ruling that software itself cannot be sanctioned. However, in February, Judge Katherine Failla rejected the motion, asserting that Storm’s actions still violated the sanctions list, regardless of the court’s previous determination.
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
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© 2024 Shib Inc. All rights reserved.
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This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
The Office of Foreign Assets Control (OFAC), the agency overseeing sanctions enforcement, made the decision to remove Tornado Cash-linked addresses from the Specially Designated Nationals (SDN) list.
“Based on the Administration’s review of the novel legal and policy issues raised by use of financial sanctions against financial and commercial activity occurring within evolving technology and legal environments, we have exercised our discretion to remove the economic sanctions against Tornado Cash as reflected in Treasury’s Monday filing in Van Loon v. Department of the Treasury,” the Treasury Department stated.
However, the agency reiterated its concerns over ongoing illicit cryptocurrency activities and emphasized its commitment to enforcing sanctions against North Korea.
A Fifth Circuit judge ruled in November 2024 that automated software does not qualify as property, making it ineligible for sanctions imposed by OFAC.
In 2022, the OFAC sanctioned the crypto mixing service, alleging it played a key role in laundering illicit funds. Among its users was the notorious North Korean hacking group Lazarus, which reportedly funneled millions in stolen cryptocurrency through the platform to obscure the origins of their illicit gains.
The crypto community responded positively to the development. Paul Grewal, Chief Legal Officer of Coinbase, announced the development in a post on X. Coinbase, a major cryptocurrency exchange, played a key role in funding Tornado Cash’s legal defense. “Tornado Cash appears to have been delisted. Game over,” Grewal wrote.
Despite this legal victory, Tornado Cash co-founder Roman Storm remains entangled in a criminal case set for trial in July. Prosecutors allege that Storm played a direct role in developing the platform’s protocols and smart contracts, which facilitated illicit transactions.
His defense team sought to have the charges dismissed, citing the November 2024 ruling that software itself cannot be sanctioned. However, in February, Judge Katherine Failla rejected the motion, asserting that Storm’s actions still violated the sanctions list, regardless of the court’s previous determination.
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
Your email address will not be published.
© 2024 Shib Inc. All rights reserved.
source
This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
