The Ministry of Treasury has to lift Penalties on Tornado Cash, the smart mixer in Ethereum, after a series of legal defeats and administrative challenges.
“Based on the administration's review of the new legal and political issues raised by the use of financial sanctions against the financial and commercial activity that occurs in advanced technology and legal environments, we practiced our discretionary power to remove economic sanctions against the hurricane funds, and it is reflected in the provision of the treasury on Monday in the Ministry of Treasury”, “the Ministry of Treasury”, I mentioned.
A quick overview of the story of Tornado Cash
Tornado Cash was launched in 2019 as a central invoking protocol to enhance the privacy of ETHEREM.
In August 2022, the mixer was added to the list of foreign asset control office (OFAC), which includes individuals and entities punishable by punishment. American law enforcement claimed that the hurricane criticism is easy 7 billion dollars In money laundering, including the money associated with the Lazaros Group in North Korea.
This led to a ban on American people who use legal service and procedures against its participating founders, Roman and Roman storm SiminovWho were accused in 2023 of money laundering are linked to more than one billion dollars in transactions.
Six users of Tornado Monetary, Support from CoinbaseFile a lawsuit against the treasury, and challenge the penalties.
A The Federal Court of Texas ruled in January 2025 It is not possible to punish smart contracts, that is, a decision that was supported by a decision Fifth circle in November 2024.
today The Ministry of Treasury officially lifted the sanctionsQuoting advanced legal and technological considerations, although it expressed concern about the continuous illegal encryption activities and strengthened its intention and authority to continue the democratic sanctions of Korea.
Tension continues
However, the Treasury has strengthened its intention to enforce sanctions against the Democratic Republic of Korea (DPRK), a constant source of geopolitical tension in view of the last billion dollars+ the last of bybit that he argued that he was executed by a group of cartridges, a group of DRKP relationships.
“We still feel very anxious about the campaign of penetration and laundering the important funds sponsored by the state, which aims to steal, gain and spread the digital assets of the Democratic People's Republic of Korea (DPRK) and the Kim regime,” the agency said.
“The Treasury will continue to monitor any transactions that may benefit from malicious electronic actors or democratic Korea, and the United States must exercise caution before engaging in transactions that represent such risks.”
Although the imposed punishment seems to be good news for financial privacy programs, it is too early to know the meaning of this for the Bitcoin and encryption industry in general, or whether it will have an impact on the upcoming court cases such as those against the samurai wallet developers.
“Digital assets offer enormous opportunities to innovate and create value to the American people,” Treasury Secretary Scott Bessin said. “Securing the digital asset industry from ill -treatment by North Korea and other illegal actors is necessary to establish the leadership of the United States and ensure that the American people can benefit from financial innovation and integration.”
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