TORN, the native cryptocurrency of the privacy protocol Tornado Cash, has experienced a remarkable surge of over 70% following its recent delisting from the US sanctions list.
The Office of Foreign Assets Control (OFAC) announced on March 21 that it had removed several Ethereum wallet addresses associated with the protocol. This development marks a significant turning point for the beleaguered decentralized platform, which has faced considerable criticism since its designation in 2022.
In the wake of this announcement, TORN’s price rose to $12.9, reflecting an impressive 71% increase within a single day. The cryptocurrency community embraced this news, perceiving it as a victory for privacy-centered technologies and decentralized finance (DeFi).
Legal Clarity for Tornado Cash
Tornado Cash functions as a decentralized protocol aimed at enhancing privacy for Ethereum users. It enables individuals to mix their assets with others in a communal pool prior to withdrawal, which complicates transaction tracing.
The protocol faced criticism in 2022 when OFAC imposed sanctions, attributing its use to various malicious actors, including North Korea’s Lazarus Group.
However, a federal court in Texas ruled in January 2025 that the smart contracts of Tornado Cash could not be sanctioned. The judge emphasized that the software operates autonomously, is unownable, and functions independently of any centralized authority.
This characteristic of immutability makes it resistant to being shut down or selectively restricted—a crucial factor that undermined OFAC’s argument. The ruling highlighted that, while privacy protocols can be misused, the underlying code is not subject to conventional regulatory oversight.
OFAC acknowledged this in its statement, indicating that its decision reflects a more extensive reevaluation of how financial sanctions apply in a decentralized environment where control is widely distributed and code remains unchanged.
Ongoing Focus on North Korea
Even with Tornado Cash no longer on the sanctions list, the US Treasury continues to monitor money laundering activities, particularly those perpetrated by North Korean cybercriminals like the Lazarus Group.
This state-sponsored hacking group has reportedly stolen billions from cryptocurrency platforms and has allegedly funneled these funds to support North Korea’s nuclear and ballistic missile initiatives.
The Treasury reiterated its dedication to dismantling these harmful cyber operations and upholding sanctions against North Korea. Treasury Secretary Scott Bessent stated:
“Protecting the digital asset space from exploitation by North Korea and other illicit entities is vital for establishing U.S. leadership and ensuring that the American public can reap the benefits of financial innovation and inclusion.”
Mentioned in this article
