According to @1HowardWu, vilifying all crypto privacy technology because of Tornado Cash harms the ecosystem and the U.S. should pursue compliant privacy solutions instead of blanket prohibitions, positioning this as critical for American leadership in crypto (source: X post by @1HowardWu on Sep 1, 2025, https://twitter.com/1HowardWu/status/1962508745591882103). OFAC sanctioned Tornado Cash in August 2022 for facilitating laundering of more than $7 billion, including funds tied to the DPRK-linked Lazarus Group, prompting U.S. platforms to restrict interactions with the Ethereum (ETH) mixer and tighten compliance controls (source: U.S. Treasury OFAC press release JY0916, Aug 8, 2022, https://home.treasury.gov/news/press-releases/jy0916). Following the designation, mixer inflows declined while sanctioned actors sought alternative obfuscation methods, evidencing regulatory pressure on privacy tooling that influences on-chain liquidity routes traders rely on (source: Chainalysis analysis of mixer activity post-OFAC designation, 2023, https://blog.chainalysis.com/reports/tornado-cash-sanctions-mixers/). U.S. Treasury’s 2023 DeFi Illicit Finance Risk Assessment prioritizes closing AML/KYC gaps in DeFi and VASPs; traders should monitor policy moves shaping availability of compliant zero-knowledge and privacy solutions on U.S.-regulated venues that affect ETH DeFi flows and privacy-coin market access (source: U.S. Treasury, Illicit Finance Risk Assessment of Decentralized Finance, April 2023, https://home.treasury.gov/system/files/136/DeFi-Risk-Assessment.pdf; X post by @1HowardWu on Sep 1, 2025, https://twitter.com/1HowardWu/status/1962508745591882103).

According to Crypto Rover, the U.S. Treasury has removed Tornado Cash from the OFAC sanctions list, allowing U.S. individuals to legally engage with the platform. This could lead to increased trading activity for Tornado Cash, as regulatory barriers are lifted, making it more accessible to U.S. traders and investors. Traders should monitor market reactions and potential shifts in liquidity as this development unfolds.

According to @EleanorTerrett, the U.S. Treasury has removed Tornado Cash from its OFAC sanctions list, marking a significant win for decentralized finance (DeFi) platforms. This decision is expected to enhance liquidity and trading volumes in the DeFi sector, as Tornado Cash's prior blacklisting had restricted its use for privacy-centric transactions. Traders and investors may see this as an opportunity for increased DeFi adoption and a positive impact on market dynamics.

According to MistTrack, since the OFAC sanctions in April 2022, Garantex has adapted its hot wallet management to sustain operations. Initially, hot wallets were rotated approximately quarterly from April 2022 to December 2022. The frequency increased to weekly rotations from December 2022 to February 2023. From February 2023 onwards, Garantex has continued to adjust its hot wallet rotation strategy, although the specific frequency post-February 2023 was not detailed in the tweet.