The Division of Treasury has lifted Sanctions on Twister Money, the Ethereum based mostly sensible contract mixer, following a collection of authorized defeats and administrative challenges.
“Primarily based on the Administration’s assessment of the novel authorized and coverage points raised by use of monetary sanctions in opposition to monetary and business exercise occurring inside evolving know-how and authorized environments, we’ve exercised our discretion to take away the financial sanctions in opposition to Twister Money as mirrored in Treasury’s Monday submitting in Van Loon v. Division of the Treasury,” the Treasury Division acknowledged.
Fast Overview of the Twister Money Story
Twister Money was launched in 2019 as a decentralized protocol to boost transaction privateness on Ethereum.
In August 2022, the mixer was added to the Workplace of Overseas Property Management (OFAC) checklist, which incorporates sanctioned people and entities. U.S. legislation enforcement alleged that Twister Money facilitated over $7 billion in cash laundering, together with funds linked to North Korea’s Lazarus Group.
This led to a ban on U.S. individuals utilizing the service and authorized motion in opposition to its co-founders, Roman Storm and Roman Semenov, who have been indicted in 2023 for cash laundering tied to over $1 billion in transactions.
Six Twister Money customers, backed by Coinbase, sued the Treasury, difficult the sanctions.
A Texas federal courtroom dominated in January 2025 that the sensible contracts couldn’t be sanctioned, a call upheld by the Fifth Circuit in November 2024.
At the moment the Treasury formally lifted the sanctions, citing evolving authorized and technological concerns, although it expressed concern about ongoing illicit crypto actions and bolstered its intent and authority to proceed DPRK sanctions.
Stress Continues
The Treasury however bolstered its intent to implement sanctions in opposition to Democratic Folks’s Republic of Korea (DPRK), an ongoing supply of geopolitical pressure given the current $1 billion+ hack from Bybit argued to have been executed by Lazarous, a hacking group with DRKP ties.
“We stay deeply involved concerning the important state-sponsored hacking and cash laundering marketing campaign aimed toward stealing, buying, and deploying digital belongings for the Democratic Folks’s Republic of Korea (DPRK) and the Kim regime,” the company acknowledged.
“Treasury will proceed to observe intently any transactions which will profit malicious cyber actors or the DPRK, and U.S. individuals ought to train warning earlier than partaking in transactions that current such dangers.”
Though the lifted sanction seems to be excellent news for monetary privateness software program builders, it’s too early to inform what this implies for the Bitcoin and crypto trade generally, or whether or not it is going to affect upcoming courtroom circumstances like these in opposition to the Samurai Pockets builders.
“Digital belongings current monumental alternatives for innovation and worth creation for the American folks,” stated Secretary of the Treasury Scott Bessent. “Securing the digital asset trade from abuse by North Korea and different illicit actors is important to establishing U.S. management and making certain that the American folks can profit from monetary innovation and inclusion.”
