The U.S. Treasury Department lifted its sanctions against cryptocurrency mixer Tornado Cash on Friday after a federal appeals court ruled in November the penalty levied by the agency’s Office of Foreign Assets Control (OFAC) was an overreach.
The Treasury said in press release that after reviewing the legal and policy issues, it decided to remove the economic sanction against Tornado Cash, which prevented any U.S.-based person or entities from conducting business with the company. The sanctions were put in place due to the crypto mixer’s alleged links to North Korean agents that laundered money stolen by state-sponsored hacking groups. Tornado Cash’s business model was alleged to have allowed individuals to access cryptocurrency while being completely anonymous, something that goes against routine anti-money laundering and know your customer principals.
