US lifts sanctions on Tornado Cash after legal ruling

The U.S. Treasury Department has lifted sanctions against Tornado Cash, a cryptocurrency mixer previously accused of laundering over $7 billion for North Korean hackers. This decision follows a federal appeals court ruling that deemed the sanctions an overreach, raising critical legal and ethical questions regarding the regulation of decentralized technologies. Tornado Cash, which enhances transaction privacy, was blacklisted in August 2022 due to concerns that it facilitated illicit activities. The Treasury acknowledged its ongoing concerns about state-sponsored hacking and money laundering, particularly involving North Korea, and emphasized the need for caution in future transactions. The reversal signifies a complex shift in the U.S. government's approach towards privacy tools in the cryptocurrency sector. Coinbase and other advocates for financial privacy argue that the case underscores the importance of safeguarding developers' rights and the principles of decentralization.