Tornado Cash Delisted, TORN Surges 100%

The U.S. Treasury's recent decision to delist Tornado Cash from its sanctions list has sparked a significant reaction in the cryptocurrency market. The delisting, which occurred on March 21, has been hailed as a victory for privacy-focused technology within the crypto space. Tornado Cash, a platform designed to obscure transaction trails and recipient identities, had been under scrutiny since August 2022 when the Biden Administration sanctioned it due to allegations of North Korean actors using it to launder stolen funds. The founders and developers of Tornado Cash, including Alexey Pertsev and Roman Storm, were also indicted during this period.

Market insiders have welcomed the delisting, viewing it as a regulatory win for privacy tech. Coinbase founder Brian Armstrong expressed his support, stating that privacy is an important feature for law-abiding citizens and that sanctioning open-source code raises free speech issues. He also emphasized the need to combat illicit activity in crypto while adhering to American laws. Armstrong's sentiments were echoed by Balaji Srinivasan, former Coinbase CTO, who called for immediate pardons and restitution for Tornado Cash’s founders, stating that their prosecution was invalid.

The delisting comes after a U.S. court ruled in November that the Office of Foreign Assets Control (OFAC) had overstepped its authority by sanctioning Tornado Cash. Despite this ruling, the platform remained blacklisted until the recent delisting. U.S. Treasury Secretary Scott Bessent reiterated the importance of securing the digital asset industry from abuse by illicit actors, highlighting the need for regulatory oversight to ensure financial innovation and inclusion.

Roman Storm, one of the founders of Tornado Cash, celebrated the delisting as a victory for privacy technology and TORN, the native token of the platform. Following the news, TORN's value surged by over 100%, rising from $8 to nearly $16. However, at the time of writing, most of these gains had been lost. The delisting of Tornado Cash marks a significant milestone for privacy-focused technology in the crypto industry, highlighting the ongoing debate between regulatory oversight and the need for privacy in digital transactions.