U.S. Treasury Lifts Sanctions on Tornado Cash Following Court Ruling

The decision reverses a 2022 move to blacklist the crypto mixer over allegations of facilitating North Korean money laundering.

The U.S. Treasury officially removed Tornado Cash from its sanctions list after a federal court ruled in November 2024 that OFAC exceeded its authority by sanctioning its smart contracts.
Tornado Cash was initially sanctioned in 2022 for allegedly laundering over $7 billion in cryptocurrency, including $455 million linked to North Korea’s Lazarus Group.
Despite the sanctions, Tornado Cash's operations continued, with Ethereum co-founder Vitalik Buterin publicly acknowledging its use for private donations to Ukraine.
Roman Storm, a co-founder of Tornado Cash, faces trial in July 2025 for alleged money laundering facilitation, reflecting ongoing legal scrutiny of the platform.
The Treasury emphasized balancing vigilance against illicit activities with fostering innovation in the digital asset sector, citing concerns over North Korea's cybercrime campaigns.