Tornado Cash has returned to legal status in the U.S. as of March 2025, but its history shows how privacy protocols can attract both legitimate users and malicious actors. While zero-knowledge tools protect privacy, they also carry legal and compliance risks. Always check wallet reputations, understand protocol mechanics, and stay informed about government monitoring to use these tools responsibly.
Q1: What does Tornado Cash do?
A1: Breaks transaction links for privacy
Q2: What technology enables Tornado Cash to provide privacy?
A2: Zero-Knowledge Proofs
Q3: What happened after sanctions were lifted in March 2025?
A3: Legitimate usage increased, illicit usage decreased
Q4: What should users be cautious of even after the sanctions were lifted?
A4: Interacting with sanctioned entities or wallets
