Tornado Cash's TORN Token Surges 71% After US Sanctions Removal

Tornado Cash's native token, TORN, saw a remarkable 71% increase in value following its removal from the US sanctions list. This significant development came after the Office of Foreign Assets Control (OFAC) confirmed on March 21 that several Ethereum wallet addresses linked to the protocol had been delisted. This action was widely celebrated within the crypto community, particularly by advocates of privacy-focused technologies and decentralized finance (DeFi).

Tornado Cash is a decentralized protocol designed to enhance the privacy of Ethereum users. It achieves this by allowing users to mix their assets with others in a shared pool before withdrawal, thereby making it more difficult to track individual transactions. The protocol faced intense scrutiny in 2022 when OFAC sanctioned it, citing its alleged use by malicious actors, including North Korea’s Lazarus Group. However, a federal court in Texas ruled in January 2025 that Tornado Cash’s smart contracts could not be subject to sanctions. The judge noted that the software is autonomous, cannot be owned, and functions independently of any central authority. This immutability means it cannot be shut down or selectively restricted, a key point that weakened OFAC’s case. The ruling highlighted that while privacy protocols can be misused, the code itself does not fall under traditional regulatory control.

OFAC acknowledged this in its statement, noting that its move reflects a broader review of how financial sanctions apply in a space where control is distributed and code is immutable. Despite Tornado Cash’s removal from the sanctions list, the US Treasury remains vigilant about money laundering, particularly by North Korean cybercriminals like the Lazarus Group. The Lazarus Group, a state-sponsored hacking unit, has stolen billions from crypto platforms and allegedly used these funds to support the Asian country’s nuclear and ballistic missile programs. The Treasury reiterated its commitment to disrupting these malicious cyber activities and enforcing sanctions against North Korea. Treasury Secretary Scott Bessent stated, “Securing the digital asset industry from abuse by North Korea and other illicit actors is essential to establishing U.S. leadership and ensuring that the American people can benefit from financial innovation and inclusion.”