Tornado Cash Fights On
Weekly Recap: Tornado Cash sanctions dropped, Ripple reigns supreme.
Early Friday morning, the U.S. Department of the Treasury announced it had removed smart contracts associated with crypto privacy and mixing service Tornado Cash from its Office of Foreign Assets Control sanctions list.
The August 2022 addition of Tornado Cash to this spawned widespread crypto industry condemnation and resulted in a “chilling effect,” which led many crypto service providers to adopt draconian censorship policies to preclude interactions with addresses that had utilized the previously sanctioned mixing service.
While it now appears to be legal for individual Americans to interact with the Tornado Cash smart contracts in an end-user capacity, Treasury maintains that it is committed to enforcing sanctions violations against North Korea and “malicious cyber actors” who profit from criminal activity. Outstanding legal risks likely remain for Tornado Cash relay operators, TORN token holders, and the application’s founders.
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Jack Inabinet
Jack Inabinet is a Senior Analyst with a passion for exploring the bleeding edge of crypto and finance. Prior to joining Bankless, Jack worked as an analyst at HAL Real Estate where he conducted market research and financial analysis for commercial real estate development and acquisition activities in the Seattle region. He graduated from the University of Washington’s Michael G. Foster School of Business.
