The Rise of TORN Token Post Removal from US Sanctions List
Following its removal from the US sanctions list, TORN, the native token of privacy protocol Tornado Cash, has experienced a remarkable rally, surging over 70% in value.
Positive Development for Tornado Cash
The Office of Foreign Assets Control (OFAC) officially delisted several Ethereum wallet addresses associated with Tornado Cash on March 21. This decision marked a significant milestone for the decentralized platform, which has been under scrutiny since being sanctioned in 2022.
- Price Surge: TORN’s price skyrocketed to $12.9, marking a 71% increase within just 24 hours.
- Community Response: The crypto community welcomed the news, seeing it as a victory for privacy-focused technologies and DeFi.
Legal Clarity and Independence of Tornado Cash
Tornado Cash functions as a decentralized protocol that aims to enhance privacy for Ethereum users by allowing them to mix their assets in a shared pool, making transaction tracking more challenging.
In 2022, OFAC imposed sanctions on Tornado Cash, alleging its use by malicious actors like North Korea’s Lazarus Group. However, in January 2025, a federal court in Texas ruled that the protocol’s smart contracts were not subject to sanctions. The court highlighted the autonomous and independent nature of the software, which cannot be controlled or owned by any central authority.
- Immutability: Tornado Cash’s code’s immutability prevents selective restrictions or shutdowns, weakening OFAC’s case against it.
- Regulatory Control: The court ruling emphasized that while privacy protocols can be misused, the code itself does not fall under traditional regulatory control.
Focus on Cybercrime and North Korea
Despite Tornado Cash’s delisting from the sanctions list, the US Treasury remains vigilant against money laundering, particularly by North Korean cybercriminals such as the Lazarus Group.
The Lazarus Group, a state-sponsored hacking unit, has been involved in stealing billions from crypto platforms and allegedly using the funds to support North Korea’s weapons programs.
Treasury Secretary Scott Bessent reiterated the commitment to combatting these cyber activities and enforcing sanctions against North Korea to safeguard the digital asset industry from abuse.
