OFAC FAQ (Current) # 1078 - Cyber-related Sanctions (PDF contains all versions)

Date issued: Nov. 08 2022

Last substantive commentary amendment:
Aug. 19 2023

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TURBOFAC Commentary (535 words)

Notes:

[11-29-24 Update - see Joseph Van Loon et al v. Department of the Treasury et al. (2024, 5th Cir.), and comments thereto. This FAQ is likely to be removed or amended at some point in the future; the below has not yet been amended in light of the 5th Circuit opinion.]

1) For factual background, refer to https://www.coindesk.com/policy/2022/08/16/tornado-cash-sanctions-are-spiraling-into-compliance-nightmares/ and https://blockworks.co/defi-web-apps-block-users-hit-by-tornado-cash-dust-attack/.

2) With this FAQ, OFAC appears to be taking the position that the "unsolicited and nominal amounts of virtual currency or other virtual assets from Tornado Cash" are, once deposited in the virtual currency wallet of a U.S. person, property in which the "entity" Tornado Cash has an "interest". This is a notable and unusual "interest" determination, but it appears to follow from OFAC's determination that Tornado Cash has an...