Tech

US Treasury offers a way for users to withdraw funds from the Tornado Cash crypto mixer


The US Treasury Department has said that US residents and citizens can apply for a license to recover any funds they have locked in the now-banned Ethereum coin mixer Tornado Cash. The Treasury Department’s move to ban Tornado Cash in August sent the crypto community into a frenzy over privacy and government oversight, and left many wondering if crypto activity their daily life may lead to criminal charges or not. The Treasury Department’s Office of Foreign Assets Control (OFAC) also addressed other pressing questions about the impact of sanctions on Tornado Cash.

The new guide provides a way for users to legally withdraw from the private trading app by signing up OFAC . License – authorization from OFAC to enter into a transaction that would otherwise be prohibited.

There is currently around $173 million (about Rs 1,400) left in the Tornado Cash smart contract, at the time of publication, according to DefiLlama. Some of those funds may belong to users worried about the legal consequences of withdrawals.

Three Plaintiffs Have Money in Tornado Cash submit a case against the Treasury Department last week, alleging that the sanctions had frozen their legally deployed assets – a case that could be affected now, as there is an avenue to withdraw money.

Follow original sanctions notice, anonymous users protested by ‘dusting’ or sending various crypto wallets small amounts of ETH through Tornado Cash, including celebrity wallets. OFAC regulations will apply to these transactions, but OFAC will not “prioritize enforcement” in this regard, the guidance states.

Tornado Cash website went offline after sanctions, but Tornado Cash the application can still be accessed through other means. Engaging in any transaction with Tornado Cash remains prohibited for US citizens and residents.




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