The governance token tied to the crypto mixer Tornado Cash, known as TORN, experienced a significant plunge by over 50% on November 26th, as per CoinGecko data. This fall occurred in tandem with the announcement made by Binance, the leading crypto exchange, regarding the delisting of the token.
Functioning as a voting mechanism for protocol enhancements within the cryptocurrency mixing platform, Tornado Cash, TORN plummeted sharply from $3.90 to $1.66 within a span of just one day. This drastic decline of 57% transpired as Binance declared its decision to cease TORN deposits by December 8th and halt withdrawals after March 7th, 2024.
The protocol faced sanctions from the United States Office of Foreign Asset Control on August 8th, leading to the prohibition of its usage by U.S. residents due to alleged involvement in money laundering activities.
Binance, initially disallowing U.S. residents from its platform, encountered legal consequences after the U.S. Department of Justice disclosed a plea deal with the exchange on November 21st. Acknowledging that it provided services to certain U.S. customers without proper licensing, Binance confronted repercussions.
The delisting of TORN by Binance was attributed to its deviation from the set standards for listing assets, stemming from various factors that no longer aligned with Binance’s criteria. The exchange emphasized the need to uphold stringent standards for the assets it lists, periodically reviewing them to ensure compliance with industry benchmarks.
