The U.S. Treasury Department has lifted sanctions on Tornado Cash, a cryptocurrency mixer previously accused of facilitating money laundering, including by North Korean hackers. The decision follows a court ruling that favored Tornado Cash, highlighting the Treasury's overreach in imposing the sanctions. The platform had been accused of laundering over $7 billion since its inception, with specific instances involving more than $455 million stolen by North Korean hackers. Despite the delisting, concerns persist about the platform's compromised frontend due to code exploits from February 2024, which could still pose risks to crypto assets. The Treasury has expressed ongoing concerns about North Korean cyber threats and the use of digital assets for illicit activities. Treasury Secretary Scott Bessent emphasized the opportunities for innovation in digital assets while acknowledging the need to secure the industry from abuse. Coinbase, which supported the legal challenge against the sanctions, has celebrated the decision as a victory for privacy and open-source technology. Coinbase CEO Brian Armstrong stated that crime crackdowns should not stifle innovation. However, Coinbase's chief legal officer, Paul Grewal, has criticized the Treasury's claim that the case is now moot, arguing that without a final court judgment, there is no assurance against future re-sanctioning of Tornado Cash. This comes as Tornado Cash co-founder Roman Storm was arrested in Washington state in 2023, and developer Alexey Pertsev was sentenced to over five years in prison in the Netherlands for money laundering.