For a while, Tornado Cash was the nasty little duckling of the blockchain. Accused of having scrambled the tracks of several billion dollars doubtful, the famous crypto mixer had found himself on the black list of the American treasury. But surprise this March 21: the cleaver fell … upside down. The United States government has simply raised sanctions against this protocol. Draft? Maybe. Change signal? Downright.
Tornado cash liberated: The wind turns for Crypto mixers?
It is not every day that an anonymization tool, considered an accomplice of North Korean pirates (the infamous Lazarus Group, responsible for the Hack of Bybit), is washed with all suspicion … or almost. The case dates back to 2022, when Tornado Cash was accused of helping to make more than $ 7 billion disappear. Just that. The authorities have struck hard, blocking its access and freezing the connections with the US actors.
But here it is: a small grain of sand came to stop the legal machine. Last November, a court of appeal ruled that the Smart Contracts of Tornado Cash were neither people nor properties. Translation: Code cannot be sanctioned as if it were a legal entity. A real school case for lawyers and relief for defenders of the free code.
Decentralization vs regulation: does freedom have its limits?
So what does it mean This reversal For the Crypto universe? First, proof that decentralization seriously complicates the task of regulators. Impossible to muzzle open code as we would put a fine of a Wall Street crook. Then, that asks a real question: how far can we go to protect privacy without opening the door to abuse?
The treasure, for its part, does not give up guard. He always monitors cybercriminals from North Korea and recalls that vigilance remains in order. The message is clear: “OK for anonymity, but not for impunity. »»
While the dry has just dissipated a legal vagueness around Pow mining, it is around Tornado Cash to be released. If the code is free, its uses are not always so. At a time when crypto regulation is groping, this case recalls that innovation often advances faster than law … and that the debate is just beginning.
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