The U.S. Department of the Treasury announced it has exercised its discretion to remove the economic sanctions on Tornado Cash, following an Administration review of legal and policy issues raised by applying financial sanctions in evolving technology and legal environments. The action is reflected in Treasury’s filing in Van Loon v. Department of the Treasury. Treasury underscored continued concern about state-sponsored hacking and money laundering involving digital assets that benefit the Democratic People’s Republic of Korea (DPRK) and said it will keep using its authorities to disrupt malicious cyber actors and enforce DPRK-related sanctions. It also said it will continue to monitor transactions that may benefit such actors and urged U.S. persons to use caution when engaging in transactions that present these risks.
U.S. Department of the Treasury 2025-03-21
U.S. Department of the Treasury removes economic sanctions on Tornado Cash
The U.S. Department of the Treasury has lifted economic sanctions on Tornado Cash after reviewing legal and policy issues related to financial sanctions in evolving technology and legal contexts. Despite this, Treasury remains concerned about state-sponsored hacking and money laundering involving digital assets benefiting the Democratic People’s Republic of Korea (DPRK) and will continue to enforce DPRK-related sanctions. U.S. persons should exercise caution in transactions that may benefit malicious cyber actors.