Tornado Cash token soars 71% after removal from US sanctions list

Despite Tornado Cash's gains, US Treasury keeps up pressure on North Korean cybercriminals.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

TORN, the native token of privacy protocol Tornado Cash, has rallied over 70% following its removal from the US sanctions list.

The Office of Foreign Assets Control (OFAC) confirmed on March 21 that it had delisted several Ethereum wallet addresses tied to the protocol. This marked a significant milestone for the embattled decentralized platform, which has faced intense scrutiny since its sanctioning in 2022.

Following the announcement, TORN’s price surged to $12.9, representing a 71% increase within 24 hours. The crypto community also welcomed the news, viewing it as a win for privacy-focused technologies and DeFi.

Legal clarity for Tornado Cash

Tornado Cash operates as a decentralized protocol designed to improve privacy for Ethereum users. It allows users to mix their assets with others in a shared pool before withdrawal, making tracking transactions more difficult.

The protocol came under fire in 2022 when OFAC sanctioned it, citing its alleged use by bad actors, including North Korea’s Lazarus Group.

However, in January 2025, a federal court in Texas ruled that Tornado Cash’s smart contracts could not be subject to sanctions. The judge noted that the software was autonomous, could not be owned, and functioned 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 underlined that while privacy protocols can be misused, the code doesn’t 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.

Focus remains on North Korea

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 said:

“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.”

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