Overview

The U.S. Treasury Department has rescinded the sanctions imposed on Tornado Cash, a cryptocurrency mixing platform, after a federal appeals court found their actions unjustified. This decision comes in light of allegations that Tornado Cash facilitated money laundering for North Korea’s Lazarus Group.

Key Points:

• The Treasury’s sanctions list has been updated to incluide the removal of Tornado Cash and over 100 Ethereum addresses previously designated as Specially Designated Nationals (SDN).
• Roman Storm, one of Tornado Cash’s co-founders, remains under scrutiny and faces trial this coming July for his involvement in the platform’s operations.
• A statement from the U.S. Treasury expressed ongoing concerns over hacking and financial crime involving state actors and illicit enterprises.

“We remain deeply concerned about the significant state-sponsored hacking and money laundering campaign aimed at stealing, acquiring, and deploying digital assets for the Democratic People’s Republic of Korea (DPRK) and the Kim regime.”
(Translation: The U.S. Treasury highlights the continuous threat posed by state-sponsored hacking activities.)

The revocation of sanctions on Tornado Cash has caused a notable surge in its associated token, indicating a market response to the regulatory shift.