GitHub Reverses Tornado Cash Ban After OFAC Clarification

GitHub has announced that it has reversed a complete ban on Tornado Cash, meaning code repositories for the Ethereum-based mixer were relisted on the site.

However, the code repositories remain restricted to “read-only.” After this partial restoration, developers have been urging GitHub to restore the code repositories fully. 

A Partial Restoration 

GitHub is the most widely used software hosting platform on the internet. The platform has announced that it is lifting a ban on Tornado Cash’s open-source repositories. Despite the lifting of the ban, the code remains in “read only” mode, which means the code cannot be worked on as of now. GitHub lifted the ban on Tornado Cash after the Office of Foreign Assets Control (OFAC) clarified that the sanctions against Tornado Cash did not apply to users sharing or reading the app code. 

The U.S. Treasury Department, in an official post, clarified the details around the ban, stating, 

“U.S. persons would not be prohibited by U.S. sanctions regulations from copying the open-source code and making it available online for others to view, as well as discussing, teaching about, or including open-source code in written publications.”

Ethereum developer Preston Van Loon announced the news on Twitter, stating, 

“@github has unbanned the @TornadoCash organization and contributors on their platform!”

The Sanctions Against Tornado Cash 

Tornado Cash and select Ethereum addresses linked to the application were blacklisted by the Office of Foreign Assets Control (OFAC) under the Specially Designated National List. The ban was put in place after it emerged that cybercriminals were using the application to launder money. Reports had also emerged that a notorious hacking group linked to North Korea had used the application in the past. 

As a result, GitHub removed all Tornado Cash to comply with the ban. However, after the clarification issued by the OFAC, GitHub modified the ban, although full functionality could be some way off, depending on the sanctions. 

Ethereum Developers Call For Complete Reversal 

Several Ethereum developers have now urged GitHub and other platforms that host the Tornado Cash code to reverse the bans in its entirety, stating that the code is protected under the First Amendment of the U.S. Constitution. Chief among them was Ethereum core developer Preston Van Loon, who had urged GitHub to relist the Tornado Cash code on the 13th of September.

“Hey @github, please unban @TornadoCash code repositories now. OFAC has stated: ‘U.S. persons would not be prohibited by U.S. sanctions regulations from copying the open-source code and making it available online for others to view’”

He called the relisting of the Tornado Cash code a step in the right direction, stating, 

“But that is progress from an outright ban. I still encourage GitHub to reverse all actions and return the repositories to their former status.”

Tornado Cash has been blacklisted since the 8th of August, when the OFAC banned residents of the United States from accessing or using the application. It also blacklisted 44 USD Coin and ETH addresses that were associated with the application. 

Concerns In The Crypto Community 

Tornado Cash allows users to protect their privacy and anonymity by hiding their crypto transactions. It does this by obfuscating information trails on the blockchain. The application came under intense regulatory scrutiny after the OFAC announced its ban, triggering developer arrests after allegations of money laundering surfaced. 

The controversy around Tornado Cash has raised significant concerns and questions within the developer and cryptocurrency community. Developers are increasingly concerned about the legal ramifications of writing open-source code. Major crypto exchanges and companies have also waded into the fray, with Coinbase publicly supporting a lawsuit filed by Tornado Cash users against the OFAC.

Ethereum co-founder has also publicly stated that he has used Tornado Cash to donate funds towards Ukraine to ensure the privacy of the recipients. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.