See More

Department of Treasury Publishes Guidelines on How to Withdraw Assets From Now-Banned Tornado Cash

2 mins
Updated by Ryan James
Join our Trading Community on Telegram

In Brief

  • New guidelines allow Tornado Cash users to withdraw their assets from the platform.
  • They will have to request a specific license from OFAC and provide detailed information regarding their transactions.
  • Tornado Cash was blacklisted by the Treasury Department on Aug.8.
  • promo

The U.S. Department of Treasury published guidelines on how users of the now-banned crypto mixer Tornado Cash can withdraw their assets.  

The Treasury blacklisted and added the Ethereum (ETH)-based software to the Specially Designated Nationals list on Aug. 8, citing a national security issue. This list contains individuals, entities, and crypto addresses that U.S. citizens are prohibited from using. Tornado Cash users have been unable to access the assets on the platform and any Ethereum wallet that has engaged with the service.

Guidelines on redemption

The Office of Foreign Assets Control has published a set of rules today that outlines how U.S. users can redeem their assets on Tornado Cash. Only the assets involved in transactions before Aug. 8 and not involved in “sanctionable conduct” can be withdrawn. 

Users will have to request a specific license from OFAC. They will also have to provide wallet addresses for the remitter and beneficiary, transaction hashes, the date and time of the transaction(s), and the number of digital assets, the guidelines say. 

OFAC further explains that no action can be taken on the platform anymore for U.S. citizens. “If U.S. persons were to initiate or otherwise engage in a transaction with Tornado Cash, including or through one of its wallet addresses, such a transaction would violate U.S. sanctions prohibitions, unless exempt or authorized by OFAC.”

Crypto community response

The ban on the crypto mixer has attracted a lot of criticism from the crypto community. Coin Center, a non-profit organization aimed at shaping and incentivizing a conversation about policies related to cryptocurrencies, conducted an analysis following the Treasury’s decision.

Based on the analysis, Coin Center  concluded that the governmental agency “overstepped its legal authority” and “has not adequately acted to mitigate the foreseeable impact its action would have on innocent Americans.” The organization added that they planned to start a discussion about the issue with regulators and are even considering taking this case to court. 

Meanwhile, Coinbase, one of the leading crypto exchanges in the world, decided to foot the bill of the lawsuit filed against the Department. The Exchange believes that this ban represents a potential threat to tech platforms, and regulators should develop an appropriate legal framework.

For Be[In]Crypto’s latest news, click here.

Top crypto platforms in the US | March 2024
Coinbase Coinbase Explore →
AlgosOne AlgosOne Explore →
Chain GPT Chain GPT Explore →
iTrustCapital iTrustCapital Explore →

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

BIC_userpic_Catherine-Ross.jpg
Catherine Ross-Mychka
Before joining be[in]crypto, Catherine worked as a deputy editor in chief at Cointelegraph, editor in chief at Currency.com, and crypto managing editor at Benzinga. She has hosted numerous video shows and international conferences, has moderated over 30 panels and interviewed over 60 crypto entrepreneurs and executives.
READ FULL BIO
Sponsored
Sponsored