Tornado Cash Token Plummets After Binance Delisting Announcement
Tornado Cash experienced a 56% drop in value after Binance, the largest cryptocurrency exchange globally, declared its intention to delist the token. The token’s price fell from nearly $4.00 to $1.66 at 2:55 p.m. ET, according to CoinGecko.
Binance stated that it regularly reviews each digital asset listed on its platform to ensure they meet their high standards. If a coin or token fails to meet these standards or if there are changes in the industry, Binance conducts an in-depth review and may choose to delist it.
On December 7, Binance plans to remove Tornado Cash along with BitShares, PERL.eco, and Waltonchain tokens from its exchange. As a result of this announcement, BitShares saw a decline of approximately 44%, while Waltonchain dropped by about 59%. PERL.eco also experienced a 59% decline.
Tornado Cash Co-founder Faces Legal Troubles
In September, Tornado Cash co-founder Roman Storm pleaded not guilty in a New York District Court after being charged with conspiracy to commit money laundering. Prosecutors alleged that Tornado Cash facilitated money laundering amounting to more than $1 billion and violated U.S. sanctions.
Binance’s Regulatory Challenges and Settlement
Last week, Binance agreed to pay $4.3 billion in penalties and forfeiture as part of a historic settlement with U.S. authorities regarding Bank Secrecy Act violations. The new CEO of Binance, Richard Teng, emphasized the company’s commitment to regulatory collaboration.
Tornado Cash Sanctioned by OFAC
The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury designated Tornado Cash as a sanctioned entity last year. This designation prohibits individuals and companies in the U.S. from engaging in financial transactions with the open-source software. Tornado Cash allows users to anonymize transactions on the Ethereum blockchain.
Hot Take: Controversy Surrounding Tornado Cash
There has been criticism from some cryptocurrency advocates regarding the targeting of Tornado Cash by U.S. authorities. The delisting by Binance, along with legal troubles and sanctions, have further intensified scrutiny around the token.
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