The U.S. Treasury's Office of Foreign Assets Control (OFAC) imposed sanctions on Tornado Cash in August 2022, alleging its involvement in money laundering activities linked to North Korea's Lazarus Group

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The US Treasury’s Office of Foreign Assets Control (OFAC) originally sanctioned Tornado Cash in August 2022, accusing it of facilitating money laundering by the North Korean Lazarus Group. The group was alleged to have laundered more than $455 million in stolen digital assets through the protocol.

The ruling formally overturned the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) sanctions against Tornado Cash, which had been imposed in August 2022 due to allegations of facilitating illicit digital asset laundering by malicious actors, including North Korea.