The U.S. Treasury has lifted sanctions against Tornado Cash, the cryptocurrency mixer previously implicated in money laundering for the North Korean Lazarus Group. This decision follows a Fifth Circuit ruling stating that Tornado Cash, due to its immutable smart contracts, does not constitute "property" under the law that governs economic sanctions. The Treasury acknowledged the need to adapt to the challenges of regulating technology in financial spaces while still emphasizing its commitment to combatting cyber threats and illicit funding, particularly related to North Korea's nuclear programs.
With respect to immutable smart contracts, the court reasoned, there is no person in control and therefore 'no party with which to contract.'
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