US Treasury Lifts Sanctions on Tornado Cash: What Could Go Wrong? 😂💸

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Well, folks, hold onto your wallets! The U.S. Department of the Treasury has decided to lift the sanctions on Tornado Cash, a fancy-schmancy decentralized cryptocurrency mixer. That’s right, Americans can now mix it up with their crypto like it’s a cocktail party! 🍹💰

Just a year ago, in August 2022, the Treasury was throwing a fit, accusing Tornado Cash of being the go-to mixer for money laundering, including some shady transactions linked to North Korea’s infamous Lazarus Group. I mean, who knew mixing could be so dangerous? It’s like a blender for bad guys! 🥴

Launched in 2019, Tornado Cash is like the magician of the Ethereum world, making your crypto disappear and reappear somewhere else, all while keeping the origins a secret. It’s like a magic show, but instead of rabbits, it’s your hard-earned cash! 🎩✨

Now, while some folks just want to keep their financial secrets safe, others have been using this service to launder money like it’s laundry day! The Treasury claimed Tornado Cash was responsible for washing over $7 billion in virtual currency. That’s a lot of dirty laundry! 🧺💵

Treasury Secretary Scott Bessent chimed in, saying, “Digital assets present enormous opportunities for innovation and value creation for the American people.” Translation: “We want to make money, but let’s keep the bad guys out!” It’s like trying to keep the raccoons out of your trash while still enjoying a midnight snack! 🦝🍕

Free Speech Shenanigans

But wait! Critics are waving their arms like they just saw a ghost, claiming that sanctioning open-source software is like telling a comedian they can’t tell jokes. A group of Tornado Cash users, with a little help from their friends at Coinbase, decided to take the Treasury to court. Talk about a legal showdown! ⚖️💥

In November 2024, a federal appeals court said, “Not so fast, Treasury!” They ruled that the Treasury had overstepped its bounds, declaring that Tornado Cash’s smart contracts aren’t “property” under federal law. So, it looks like Congress needs to step up and fix the laws instead of the courts playing referee! 🏅

Judge Don Willett even said that while the tech could be misused, it’s Congress’s job to change the rules, not the judges. So, let’s hope they’re not too busy arguing over who gets the last donut in the break room! 🍩

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2025-03-21 18:44