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U.S. Treasury Reverses Sanctions on Tornado Cash

• In 2021, Bitcoin Fog’s founder was arrested for money laundering.
• The U.S. Treasury sanctioned Tornado Cash in 2022, banning its use by Americans.
• Tornado Cash processed over $7 billion in virtual currency since its inception in 2019.
• A November 2024 court ruling found Tornado Cash’s smart contracts cannot be classified as “property.”
• In March 2025, the U.S. Treasury lifted sanctions against Tornado Cash.

The U.S. Treasury initially sanctioned Tornado Cash in August 2022 due to concerns over money laundering but reversed this decision in March 2025 following a court ruling that its smart contracts were not “property.”