Crypto exchange giant Binance, has made a decision to delist Tornado Cash’s native token TORN, on December 7, 2023. So, this is causing shockwaves through the crypto community. This decision, however, is part of Binance’s stringent review process. Moreover, it comes amid a broader purge of other tokens, including BitShares (BTS), PERL.eco (PERL), and Waltonchain (WTC).
Binance Ceases Support for TORN Deposits and Withdrawals
- The announcement, made on November 27, 2023, was through a blog post, indicating a halt in the support. So, there was a roadblock for both deposits and withdrawals of TORN on Binance starting December 7, 2023. The time for this is at 03:00 (UTC). Moreover, the suspension of withdrawals for TORN, BTS, PERL, and WTC from Binance is to occur on March 7, 2024, at 03:00 (UTC).
- The sudden decision by Binance is causing mixed feelings across the crypto sphere. So, it was even the cause of a rapid decline in the price of TORN by more than 45%. This is below the $2 mark, according to data from CoinGecko.
TORN Volatile Journey Amidst Regulatory and Legal Turmoil
- The delisting of TORN from Binance arrives on the heels of unsettling events within the Tornado Cash ecosystem. So, Roman Storm, co-founder of Tornado Cash, previously faced charges related to alleged involvement in laundering money. This is over $1 billion of illicit funds attributed to North Korean hackers in September 2023.
- Tornado Cash is popular for its Ethereum-based decentralized protocol enhancing transaction privacy. So, it operates by obscuring sender and receiver addresses. The service it provides involves pooling and scrambling cryptocurrencies from various users. So, this helps to anonymize transactions and obfuscate their origins.
Binance’s Compliance Woes and Implications
- This delisting decision comes at a sensitive time for Binance. So, its founder Changpeng Zhao recently said he was guilty of violating U.S. anti-money laundering requirements. Subsequently, Zhao agreed to step down from his position at the exchange.
- The U.S. Treasury Department accused Binance of “willfully failing” to report over 100,000 transactions tied to illicit activities. So, these activities were acts such as darknet dealings, scams, and fraudulent operations. The penalty for this was a staggering $4.3 billion settlement agreement. So, this will also require Binance to conduct a retrospective review of unreported suspicious transactions to FinCEN.
Binance’s Criteria for Delisting Tokens
- According to Binance, the decision to delist tokens was due to a comprehensive review process that evaluates several key factors. So, these criteria include the commitment of the team to the project, development activity, and trading volume. Other things like evidence of fraudulent conduct, and contribution to a healthy crypto ecosystem are important.
Preceding Removals and Binance’s Compliance Efforts
- This recent delisting follows Binance’s removal of ten spot trading pairs. Moreover, it comes amidst its plan to discontinue support for BUSD trading pairs. So, the exchange previously said it will cease BUSD support in early 2024, advising users to convert their holdings to alternative assets.
The timing of these removals coincides with Binance’s settlement of money-laundering charges with the US Department of Justice. So, the firm for these charges were up to $4.3 billion. Moreover, there was also the resignation of the former CEO, Changpeng Zhao, and the appointment of Richard Teng. So, all these underscore the exchange’s commitment to regulatory compliance and operational rectitude.
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.