Tornado Cash Token Surges 60% After US Blacklist Removal, Analysts Expect Further Gains

Tornado Cash, a privacy-focused crypto project, has been removed from the US blacklist, leading to a 60% surge in its token value (TORN). The US Treasury Department's decision follows a court ruling that stated its smart contracts are not foreign property, allowing the removal from the sanctions list. Analysts expect further gains as investor confidence increases.

Tornado Cash, a privacy-enhancing decentralized finance (DeFi) project, has recently experienced a significant surge in its token value, TORN, following the removal of its sanctions by the United States (US) government [1]. The US Treasury Department's decision to delist Tornado Cash from its sanctions list stems from a court ruling that deemed its smart contracts to be outside the jurisdiction of foreign property [1].

The Tornado Cash protocol, which enables users to obfuscate their transactions on the Ethereum blockchain, has faced regulatory scrutiny for its potential involvement in illicit activities. The US Treasury Department accused Tornado Cash of assisting the North Korean Lazarus Group in laundering over $455 million worth of stolen digital assets [1]. However, the recent court ruling has provided a much-needed reprieve for the project.

The removal of sanctions has led to a substantial increase in TORN's value, with the token surging by approximately 60% [1]. The decision has also sparked optimism among analysts, who anticipate further gains as investor confidence in the project grows.

Despite the legal victory, it is essential to note that Tornado Cash developer Alexey Pertsev remains under arrest for money laundering-related charges, despite operating a non-custodial crypto mixer that never holds or controls user funds [1]. Pertsev's trial, during which he argued that he could not be held liable for the actions of those who used the Tornado Cash protocol for nefarious purposes, was ultimately unsuccessful [1].

The cryptocurrency sector, currently valued at around $3.31 trillion [2], continues to face regulatory challenges worldwide. Governments are still grappling with the complexities of regulating crypto, and the recent developments surrounding Tornado Cash serve as a reminder of the ongoing regulatory challenges in this space.

References:
[1] Cointelegraph. (2023, January 23). US Texas Court Reverses Tornado Cash Sanctions: Crypto Privacy Win. https://cointelegraph.com/news/us-texas-court-reverses-tornado-cash-sanctions-crypto-privacy-win
[2] Gadgets360. (2023, January 23). Tornado Cash US Court Reverses Sanctions: Crypto. https://www.gadgets360.com/cryptocurrency/news/tornado-cash-us-court-reverse-sanctions-crypto-7126376