More than 75 % is more than 75 %, as the United States raises cash sanctions from Tornado, citing legal and political concerns
On Friday, the US Treasury lifted economic sanctions against Tornado Cash, a mixing service in the encrypted currency that was accused of enabling illegal financial activities, including money laundering to North Korean infiltrators.
This step follows a legal challenge from the coded currency preachers and the ruling of the court, which was found that the sanctions exceeded the treasury authority.
Tornado Cash, which allows users to hide the assets and destinations of digital transactions, was included by the Treasury Office to control foreign assets (OFAC) in 2022.
The organizers claimed that the platform was used to wash more than $ 7 billion of illegal money, including $ 455 million stolen by the Piracy Group in North Korea, which is supported by the state Lazaros.
Despite the opposite of the sanctions, the Treasury confirmed that North Korea’s Internet crime operations have been a serious threat.
The officials said the administration will continue to explore other measures to combat the misuse of digital assets for criminal purposes.
“Digital assets offer enormous opportunities to innovate and create value to the American people,” Treasury Secretary Scott Bessin said.
“Securing the digital asset industry from ill -treatment by North Korea and other illegal actors is necessary to establish the leadership of the United States and ensure that the American people can benefit from financial innovation and integration.”
The torn Tornado Cash code increased more than 75 % after the treasury decision, which represents a major transformation in the market.
Legal battle and court ruling
The decision to lift the penalties comes after a lengthy battle in the court started by six users from Tornado Cash, who were financially supported by Cleptocurrency Exchang Coinbase.
Prosecutors have argued that the penalty for open source programs is a violation of freedom of expression and hindered technological development.
The Federal Appeal Court ruled in November 2024, and found that the treasury had exceeded its authority.
The court decided that the non -changeable smart contracts in Tornado Cash did not fulfill the legal definition of “property” under US sanctions laws, making the appointment of OFAC inaccurate under the Economic Forces Law in international emergency situations.
Judge Don Willet, who writes to the court, acknowledged that although technology can be used for illegal purposes, the responsibility for organizing these tools lies with Congress instead of eliminating.
The ruling has sparked wider concerns about how US agencies apply financial sanctions in the world of rapid decentralization.
How to be formed by the currency of encrypted currency under Trump
The Biden administration’s position on the organization of the cryptocurrency was scrutinized, especially since former President Donald Trump has placed himself as a pro -Rabat candidate.
Earlier this month, Trump signed an executive order that creates a strategic reserve for the cryptocurrency and hosted the White House summit with industrial leaders to discuss organizational changes.
Meanwhile, the legal audit of Cash Cash has not ended.
Participant founder Roman Storm is awaiting trial in the United States for facilitating more than a billion dollars in illegal transactions.
Another developer, Alexei Persif, was sentenced last year in the Netherlands more than five years in prison for money laundering.
The lifting of sanctions on Tornado Cash highlights the ongoing tension between the organizers and the coded currency industry, as governments around the world struggle to budget financial innovation with the need for supervision and security.
Post -rupture increases more than 75 %, as the United States raises cash sanctions from the hurricane, as concerns related to legal policy appeared first on Invezz
