The governance token for the cryptocurrency mixer Tornado Cash, TORN, experienced a staggering 57% decline from November 26 to 27, dropping from $3.90 to $1.66, according to CoinGecko data. This significant downturn coincided with the announcement by Binance, the world’s largest crypto exchange by volume, that it would delist the TORN token.
Tornado Cash operates as a cryptocurrency mixing protocol, with TORN serving as the governance token used for voting on proposals related to protocol upgrades. Binance’s decision to delist TORN involves discontinuing the acceptance of TORN deposits on December 8 and ceasing withdrawals after March 7, 2024.
The decline in TORN’s price follows the imposition of sanctions by the United States Office of Foreign Asset Control on Tornado Cash on August 8, accusing it of facilitating money laundering and prohibiting U.S. residents from using the protocol.
Binance had initially claimed that it did not permit U.S. residents on its platform. However, on November 21, the United States Department of Justice revealed a plea deal with Binance, where the exchange admitted to serving some U.S. customers without the necessary license to operate in the country.
In its announcement of TORN’s delisting, Binance cited a reassessment of each listed digital asset to ensure it meets the platform’s high standards. The statement from the Binance team mentioned, “When a coin or token no longer meets this standard, or the industry changes, we conduct a more in-depth review and potentially delist it.” The decision reflects Binance’s ongoing efforts to maintain rigorous standards for assets available on its platform.
