The governance token for the cryptocurrency mixer Tornado Cash (TORN) fell sharply on November 26–27, falling from $3.90 to $1.66—a hefty 57% decrease. The decision to delist the TORN token was announced by Binance, the largest cryptocurrency exchange in the world based on volume, at the same time as this significant decline.
Operating as a cryptocurrency mixing protocol, Tornado Cash uses its native token, TORN, as a voting tool for ideas pertaining to protocol updates. The news from Binance on November 26 that the exchange would no longer be taking TORN deposits starting on December 8 contributed to the token’s sharp decline. Furthermore, after March 7, 2024, withdrawals for TORN would no longer be accepted.
![Binance delisting sends Tornado Cash token plummeting 57% image 106](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/11/image-106.png?resize=975%2C396&ssl=1)
![Binance delisting sends Tornado Cash token plummeting 57% image 106](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/11/image-106.png?resize=975%2C396&ssl=1)
Since the declining trend of TORN’s value occurs after a noteworthy event in August, it is not an uncommon occurrence. The US Office of Foreign Asset Control (OFAC) placed sanctions on Tornado Cash on August 8 after it was claimed that the company had assisted in money laundering. As a result, residents of the United States were legally unable to use the protocol.
At first, Binance claimed that it did not allow residents of the United States to use its exchange. But on November 21, the US Department of Justice made public that Binance and the prosecution had struck a plea agreement. Binance acknowledged in this deal that it had served certain American consumers without the necessary authorization to do business in the United States.
Binance said in its official announcement about the delisting of TORN that the decision was made after a thorough analysis of the token’s adherence to the exchange’s requirements for listable assets. The Binance team stressed that they regularly evaluate listed digital assets to make sure they live up to the high standards that are expected of them.
![Binance delisting sends Tornado Cash token plummeting 57% image 107](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/11/image-107.png?resize=1024%2C642&ssl=1)
![Binance delisting sends Tornado Cash token plummeting 57% image 107](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/11/image-107.png?resize=1024%2C642&ssl=1)
A more complete examination is carried out, which may result in delisting, when a coin or token no longer complies with these requirements or if the industry conditions change.
For TORN, the combination of OFAC sanctions, regulatory oversight, and Binance’s strict requirements has created a difficult situation.
ALSO READ
- Major Altcoins to Be Delisted from Bitstamp for US Users
- Tornado Cash users challenge US Treasury sanctions in Appeal