According to the source, the U.S. Treasury’s Office of Foreign Assets Control announced sanctions on Iranian actors tied to more than $100 million in illicit oil sales facilitated with cryptocurrency, signaling heightened enforcement against crypto-enabled sanctions evasion (source: U.S. Department of the Treasury, Office of Foreign Assets Control). Traders should immediately review the latest OFAC SDN list updates and any newly identified wallet addresses to avoid tainted-flow exposure that could trigger account restrictions or asset blocks on U.S.-linked venues (source: U.S. Department of the Treasury, OFAC Sanctions Compliance Guidance). Historical precedent shows rapid compliance responses such as address blacklisting by stablecoin issuers and exchanges after OFAC designations, implying near-term counterparty and liquidity risk for affected on-chain paths (source: Circle compliance update following OFAC’s Tornado Cash designation; U.S. Department of the Treasury, OFAC). Non-U.S. intermediaries that facilitate significant transactions with designated parties face secondary sanctions risk, increasing off-ramp friction and settlement delays for flows touching Iran-linked networks (source: U.S. Department of the Treasury, OFAC Iran sanctions program guidance).

According to Crypto Rover, the U.S. Office of Foreign Assets Control (OFAC) has removed Tornado Cash from the Specially Designated Nationals (SDN) list, lifting previous sanctions. This action allows U.S. individuals to legally engage with the platform, potentially increasing its usage and liquidity. Traders may see this as an opportunity to re-evaluate Tornado Cash's role in decentralized finance (DeFi) transactions.