One month ago, the U.S. Treasury Department banned the crypto mixing service tool, Tornado Cash, due to it being frequently used for money laundering and financing terrorist groups. Now, users finally have the option of withdrawing the funds they’ve deposited before August 8 – the date when Tornado Cash was officially banned.
Former Tornado Cash users can request a special license from the Treasury’s Office of Foreign Asset Control (OFAC). In case no questionable activity is detected, OFAC will approve the withdrawal request.
OFAC has also blacklisted a number of wallets that have used Tornado Cash. In the eyes of the OFAC, users who interact with these wallets can be seen as doing business with a terrorist organization.
Finally, following the August ban, an unidentified Tornado Cash user jokingly sent trivial amounts of money to celebrities. Among others, Jimmy Fallon and Logan Paul have thus been potentially implicated in the Tornado Cash investigation. However, OFAC says that users who have received small and unsolicited amounts of money are now off the hook.