Tornado Cash token down 57% after Binance announced cancellation

The management token of crypto mixer Tornado Cash (TORN) fell more than 50% on November 26-27, according to Koingeco. The crash came on the same day that crypto exchange Binance announced it was canceling the token.

Tornado Cash cryptocurrency is a hybrid protocol. Its token, TORN, is used to vote on proposals to improve the protocol. On November 26-27, the token took a nose dive, falling from $3.90 to just $1.66, a 57% drop. The price drop comes after the world's largest crypto exchange by volume, Binance, announced that it will stop accepting TORN deposits on December 8 and will no longer process withdrawals after March 7, 2024.

In the year On August 8, Tornado Cash was sanctioned by the US Office of Foreign Assets Control (OFAC) for facilitating money laundering. This legally prevented US residents from using the protocol.

RELATED: Blockchain Association Supports Lifting Tornado Cash Sanctions

Binance initially did not allow US residents to use the exchange, he said. But on November 21, the United States Department of Justice announced that it had reached a plea agreement with Binance. As part of the settlement, Binance admitted that it served some US customers without having a business license in the US.

In the announcement, Binance canceled TORN as the token no longer meets the criteria for listable assets based on various factors. “At Binance, we regularly review each digital asset we list to ensure it continues to meet our high expectations,” the Binance team said. “If a coin or token no longer meets this standard or the industry changes, we will conduct a more thorough review and may cancel it.”