The United States has officially lifted sanctions on Tornado Cash, a popular crypto mixing platform, after a landmark court ruling. This decision ends a two-year legal battle and sparks a massive 100% surge in the price of TORN, the platform’s governance token. The move raises questions about the future of privacy in the blockchain world and its impact on the crypto market.
Tornado Cash freed from OFAC blacklist
On March 21, 2025, the US Department of the Treasury announced the removal of Tornado Cash from the Office of Foreign Assets Control (OFAC) blacklist. The decision follows a US court ruling that the platform’s smart contracts do not qualify as property subject to sanctions under the International Emergency Economic Powers Act (IEEPA). Tornado Cash had been under sanctions since August 2022, accused of facilitating over $7 billion in money laundering, including funds linked to North Korea’s Lazarus Group.
The ruling stems from a prolonged legal fight supported by crypto giants like Coinbase and CoinCenter. They argued that sanctioning an open-source tool like Tornado Cash exceeded OFAC’s authority. The court agreed, stating that smart contracts are autonomous software on the Ethereum blockchain, not owned by any individual or entity.
TORN price skyrockets: opportunity or risk?
Following the announcement, the price of TORN, the governance token of Tornado Cash, soared by over 100%. Starting at around $9.5, it climbed past $25 within hours, marking its strongest rally since the sanctions hit in 2022. This surge reflects renewed confidence in the platform’s future among investors and users.
However, caution remains. While Tornado Cash is no longer under US sanctions, it could still face scrutiny from global regulators. The platform’s history of being exploited by hackers for illicit activities adds a layer of risk for investors eyeing this dramatic price jump.
A milestone for blockchain privacy
Tornado Cash has long been a key player in protecting privacy on the Ethereum blockchain. By masking transaction origins, it appeals to users seeking anonymity, though it has also drawn criticism for enabling illegal activities. The lifting of sanctions is seen as a victory for the crypto community, reinforcing the idea that decentralized technology can resist traditional regulatory overreach.
Experts suggest this ruling could pave the way for other privacy-focused projects like Monero and Zcash. It also reignites the debate over balancing individual privacy rights with legal accountability in the fast-evolving world of cryptocurrency.
Challenges ahead for Tornado Cash
Despite this breakthrough, Tornado Cash faces hurdles. Developers like Roman Storm, released on bail after his 2023 arrest, and Alexey Pertsev, who served a 64-month sentence in the Netherlands, may still encounter legal pressure internationally. Rebuilding trust and reviving the platform’s ecosystem after years of restrictions will also take time.
Yet, the demand for privacy tools remains strong. Even under sanctions, Tornado Cash saw $1.9 billion in deposits in the first half of 2024, hinting at its enduring appeal in the decentralized finance (DeFi) space.
Broader implications for the crypto industry
The decision to lift sanctions on Tornado Cash signals a shift in how governments approach blockchain technology. It suggests that regulators may need to rethink strategies for overseeing decentralized systems. For the crypto industry, this could mean greater freedom to innovate, especially in privacy and security solutions.
Still, the platform’s controversial past ensures it will remain under watch. How Tornado Cash navigates this new chapter could set a precedent for other projects in the DeFi landscape.
The US lifting sanctions on Tornado Cash marks a turning point for the platform and the broader crypto ecosystem. With TORN surging over 100% and privacy debates heating up, the future looks promising yet uncertain. This historic ruling underscores the resilience of blockchain technology. Join Copy Trader Crypto today to stay ahead in this dynamic market and turn opportunities like the Tornado Cash comeback into profitable moves.