The Treasury Department raised Tornado cash sanctions, the intelligent contract mixer based on Ethereum, following a series of legal defeats and administrative challenges.
“On the basis of the revision of the administration of new legal and political issues raised through the use of financial sanctions against the financial and commercial activity that occur within the evolving technology and legal environments, we have exercised our discretion to remove economic penalties against the cash of the tornado, as a reflection in the deposit of the Treasury Monday in Van Loon V. Department of the Treasury”, said the Treasury Department.
Quick overview of the story in cash of Tornado
Tornado Cash was launched in 2019 as a decentralized protocol to improve the privacy of transactions on Ethereum.
In August 2022, the mixer was added to the off -off foreign assets control list), which includes sanctioned individuals and entities. The police of the United States said that Tornado Cash has facilitated over $ 7 billion money laundry, including the funds related to the Lazzaro group of North Korea.
This has led to a ban on US people who use the service and legal action against its co-founders, Roman Storm and Roman Senov, who were indicted in 2023 for money laundering linked to over $ 1 billion transactions.
Six users in Tornado cash, supported by Coinbase, sued the treasure, challenging the sanctions.
A Texas Federal Court established in January 2025 that intelligent contracts could not be sanctioned, a decision supported by the fifth circuit in November 2024.
Today the Treasury officially raised the penalties, citing evolving legal and technological considerations, although expressed concern for the activities in progress illegal cryptocurrency and strengthened its intent and the authority to continue the sanctions of the DPRK.
The voltage continues
However, the treasure has strengthened its intention to impose sanctions against the People’s Democratic Republic of Korea (DPRK), a source in geopolitical tension, given the recent $ 1 billion+ from Bybi hack, argued that it was performed by Lazarous, a hacking group with DRKP.
“We are deeply worried about the significant hacking campaign and money laundering sponsored by the state aimed at stealing, acquiring and distributing digital goods for the People’s Democratic Republic of Korea (DPRK) and the Kim regime,” said the agency.
“The treasure will continue to monitor all the transactions that can benefit from harmful cyber actors or the RPDC and the US people should pay attention before working in transactions that present these risks.”
Although the sanction raised seems to be good news for financial privacy software developers, it is too early to say what it means for the Bitcoin and Crypto industry in general, or if it will have an effect on the next judicial cases such as those against the developers of the samurai wallet.
“Digital resources have enormous opportunities for innovation and value creation for the American people,” said Treasury Secretary Scott Beesent. “Guarantee the digital activities industry from the abuse of North Korea and other illegal actors is essential to establish the leadership of the United States and ensure that the American people can benefit from innovation and financial inclusion”.