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The US Treasury Department has issued guidelines on how users of the now-banned crypto mixer Tornado Cash can withdraw their assets.

Cash blacklisted and added the Ethereum (ETH) based on the software to the list of specially designated nationals on August 8, citing a national Security publish. This list contains individuals, entities, and cryptographic addresses that US citizens are not permitted to use. Tornado Cash users were unable to access assets on the platform and all Ethereum Wallet who has engaged with the service.

Redemption Guidelines

The Office of Foreign Assets Control has published a set of rules today that outlines how US users can redeem their assets on Tornado Cash. Only assets involved in transactions prior to August 8 and not involved in “sanctionable conduct” can be withdrawn.

Users will need to request a specific license from OFAC. They will also have to provide wallet sender and recipient addresses, transaction hashes, date and time of transaction(s), and number of digital assets, as directed.

OFAC further explains that no further action can be taken on the platform for US citizens. “If U.S. persons were to initiate or otherwise engage in a transaction with Tornado Cash, including or through any of its wallet addresses, such transaction would violate U.S. sanctions prohibitions unless exempted or permitted by OFAC.”

The ban on the crypto mixer has drawn a lot of criticism from the crypto community. Coin Center, a non-profit organization aiming to shape and encourage a conversation about politics related to cryptocurrencies, carried out an analysis following the decision of the Treasury.

Based on the analysis, Coin Center concluded that the government agency “exceeded its legal authority” and “did not act adequately to mitigate the foreseeable impact its action would have on innocent Americans.” The organization added that it plans to start a discussion on the matter with regulators and is even considering taking the matter to court.

Meanwhile, Coinbase, one of the world’s leading crypto exchanges, has decided to pay the bill of the lawsuit brought against the Department. The Exchange believes that this ban poses a potential threat to technology platforms, and regulators should develop an appropriate legal framework.

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