OFAC Lifts Sanctions on Tornado Cash as Legal Review Reshapes Crypto Landscape

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has lifted economic sanctions against Tornado Cash.

More than 100 Ethereum addresses have been removed from the sanctions lists. The department stated that this decision was made following a «review of new legal and policy issues» related to cryptocurrency businesses.

The project came under OFAC sanctions in August 2022 due to its involvement in money laundering activities. According to U.S. authorities, since its inception, criminals have laundered over $7 billion through the service. Tornado Cash has notably been used by hackers from the North Korean group Lazarus.

On August 12, 2022, one of the mixer’s co-founders, developer Alexey Pertsev, was arrested on suspicions of involvement in money laundering and concealing criminal financial flows.

All of the company’s assets, user funds, and the source code of Tornado Cash were frozen both in the U.S. and abroad, and residents and citizens of the country were prohibited from using the service.

On January 21, 2025, the Fifth Circuit Court of Appeals overturned the sanctions due to OFAC’s «overreach» and remanded the case back to the U.S. District Court for the Western District of Texas for further proceedings.

Shortly after, Pertsev announced that he would be released on February 7.

The U.S. Department of Justice also emphasized their «deep concern» regarding North Korea’s activities in hacking, stealing, and laundering funds for the ruling regime.

«Digital assets provide tremendous opportunities for innovation and value creation for the American people. Protecting the digital asset industry from abuse by North Korea and other illegal entities is crucial for establishing U.S. leadership,» stated Treasury Secretary Scott Bechen.

It is worth noting that, according to Chainalysis, in 2024, OFAC-listed individuals received $15.8 billion through cryptocurrency transactions.