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Tornado mixer dropped from US blacklist

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The US Treasury Department has dropped cryptocurrency mixer Tornado Cash from its sanctions list, the agency said on March 21. 

The removal follows a January ruling by a US appeals court, which said the Treasury’s Office of Foreign Assets Control (OFAC) cannot sanction Tornado’s smart contracts because they are not the property of any foreign national. 

According to the January court ruling, “Tornado Cash’s immutable smart contracts (the lines of privacy-enabling software code) are not the ‘property’ of a foreign national or entity, meaning […] OFAC overstepped its congressionally defined authority.”

In a March 21 statement, the Treasury said OFAC removed several dozen Tornado-affiliated smart contract addresses on the Ethereum blockchain network from its sanctions list. 

Tornado’s native token, Tornado Cash (TORN), is up around 60% on the news, according to data from CoinMarketCap. 

As of March 21, TORN has a market capitalization of around $73 million and a fully diluted value (FDV) of nearly $140 million, the data shows. 

OFAC is the Treasury’s office for administering economic and trade sanctions on states and foreign nationals.

Tornado Cash lets users pool crypto deposits into a mixer and then withdraw it later to different wallet addresses, making the original funding source difficult to track.

TORN is up around 60% on the news. Source: CoinMarketCap

Related: Tornado Cash dev Alexey Pertsev’s bail a ‘crucial step’ in getting fair trial, defense says

Money laundering allegations

In August 2022, OFAC sanctioned Tornado Cash after alleging the blockchain protocol helped launder cryptocurrency stolen by Lazarus Group, a North Korean hacking outfit. 

Lazarus Group has allegedly stolen billions of dollars in crypto through various cyberattacks.

In February, Lazarus was accused of pilfering $1.4 billion from digital asset exchange Bybit in the largest-ever crypto exploit. 

In total, Tornado Cash has purportedly facilitated the laundering of more than $7 billion in illicit funds since the protocol was launched in 2019, according to the US Treasury.

In 2024, a Dutch court found Alexey Pertsev, one of Tornado Cash’s developers, guilty of money laundering and sentenced him to 64 months in prison. 

In February, Pertsev was released on house arrest, while he prepared an appeal of his conviction. 

The Ethereum Foundation has pledged to donate $1.25 million for Pertsev’s defense. 

“Privacy is normal, and writing code is not a crime,” the EF wrote in an X post while announcing the donation on Feb. 26.

Magazine: Did Telegram’s Pavel Durov commit a crime? Crypto lawyers weigh in

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Coin Market

Bitcoin ‘more likely’ to hit $110K before $76.5K — Arthur Hayes

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Bitcoin may reach a new all-time high of $110,000 before any significant retracement, according to some market analysts who cite easing inflation and increasing global liquidity as key factors supporting a price rally.

Bitcoin (BTC) has been rising for two consecutive weeks, achieving a bullish weekly close just above $86,000 on March 23, TradingView data shows.

Combined with fading inflation-related concerns, this may set the stage for Bitcoin’s rally to a $110,000 all-time high, according to Arthur Hayes, co-founder of BitMEX and chief investment officer of Maelstrom.

BTC/USD, 1-week chart. Source: Cointelegraph/TradingView

Hayes wrote in a March 24 X post:

“I bet $BTC hits $110k before it retests $76.5k. Y? The Fed is going from QT to QE for treasuries. And tariffs don’t matter cause of “transitory inflation.” JAYPOW told me so.”

Source: Arthur Hayes

“What I mean is that the price is more likely to hit $110k than $76.5k next. If we hit $110k, then it’s yachtzee time and we ain’t looking back until $250k,” Hayes added in a follow-up X post.

Quantitative tightening (QT) is when the US Federal Reserve shrinks its balance sheet by selling bonds or letting them mature without reinvesting proceeds, while quantitative easing (QE) means that the Fed is buying bonds and pumping money into the economy to lower interest rates and encourage spending during difficult financial conditions.

Other analysts pointed out that while the Fed has slowed QT, it has not yet fully pivoted to easing.

“QT is not ‘basically over’ on April 1st. They still have $35B/mo coming off from mortgage backed securities. They just slowed QT from $60B/mo to $40B/mo,” according to Benjamin Cowen, founder and CEO of IntoTheCryptoVerse.

Related: Bitcoin may recover to $90K amid easing inflation concerns after FOMC meeting

Meanwhile, market participants await the Fed’s expected pivot to quantitative easing, which has historically been positive for Bitcoin’s price.

BTC/USD, 1-week chart, 2020–2021. Source: Cointelegraph/TradingView

The last period of QE in 2020 led to a more than 1,000% surge in Bitcoin’s price, from around $6,000 in March 2020 to a then-record high of $69,000 in November 2021. Analysts say a similar setup may be forming again.

Related: Bitcoin reserve backlash signals unrealistic industry expectations

Macro conditions may support Bitcoin’s rally to $110,000

Bitcoin’s recovery to above $85,000 after last week’s Federal Open Market Committee (FOMC) meeting was a bullish sign for investor sentiment that may signal more upside, according to Emmanuel Cardozo, market analyst at real-world asset (RWA) tokenization platform Brikken.

The macroeconomic environment also “supports” a Bitcoin rally to $110,000, the analyst told Cointelegraph.

“Global liquidity has risen, discussions around a US Bitcoin strategic reserve, potentially driving Bitcoin toward that $110,000 mark as BTC liquidity available in exchanges keeps dropping, leading to a supply squeeze scenario,” he said.

“However, a correction to $76,500 aligns with Bitcoin’s historical volatility, often triggered by profit-taking or unexpected market shifts,” he added.

Other analysts also see a high likelihood of Hayes’ prediction playing out.

“Given Bitcoin’s recent close above the 21-day and 200-day moving averages, this bullish momentum aligns with his view. However, the $88K resistance remains a key hurdle,” Ryan Lee, chief analyst at Bitget Research, told Cointelegraph.

Magazine: Bitcoin’s odds of June highs, SOL’s $485M outflows, and more: Hodler’s Digest, March 2 – 8

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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Coin Market

$52M Canadian commercial property tokenized by Polymesh, Ocree Capital

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Securities dealer Ocree Capital has launched a regulated real estate platform in Canada, giving investors access to tokenized shares of commercial property on the Polymesh blockchain.

The new Ocree platform debuted on March 24 with a $51.9 million commercial real estate listing in Winnipeg, Manitoba. The featured property is a Class “A” multi-residential development with 156 units. 

Ocree said $4 million of equity is being offered to investors via fractional shares.

“Investors are not providing debt; they are participating in the equity of the asset,” Ocree CEO Ted Davis told Cointelegraph. “The investors purchase an interest in a limited partnership that invests in the underlying property.”

15 Berwick Court in Winnipeg, Manitoba, is the first commercial property listing on Ocree’s platform. Source: Google Maps

The property was tokenized entirely on Polymesh, a purpose-built blockchain for real-world assets (RWAs). As Cointelegraph reported, Polymesh was selected to tokenize a $2.5 million church in Colorado last summer. 

“By building on Polymesh’s institutional-grade public permissioned blockchain, we’ve created a platform that benefits both property owners seeking liquidity and investors looking for access to premium real estate opportunities,” Davis said.

Ocree is an exempt market dealer (EMD) registered with the Ontario Securities Commission (OSC) and has licenses in all Canadian provinces and territories, except Quebec. The EMD status allows Ocree to distribute properties to accredited investors and other qualified individuals.

“The registration process took close to one year to complete, with multiple conversations with the OSC both before and during the registration process,” said Davis.

Related: Dubai Land Department begins real estate tokenization project

Tokenization takes off

Tokenization, or the process of representing real-world assets on a blockchain, has taken the traditional finance industry by storm in recent years. 

Major financial institutions such as JPMorgan Chase, UBS, Citibank, HSBC and BlackRock have signaled their intent to offer tokenized products and services. In Canada, RWA players like Atlas One, Taurus and Polymath have also emerged with institutional-grade RWA platforms on offer.

The tokenization process, from deal structuring to secondary market trading. Source: Cointelegraph 

There’s a reason why big banks are pivoting to tokenization. In addition to boosting liquidity and making it easier to connect buyers and sellers, RWAs solve many bottlenecks in the traditional finance industry, according to Matthew Burgoyne, a partner at Canadian business law firm Osler. He wrote:

“Financial transactions, especially those that cross borders, are often delayed as a result of the large number of intermediaries that are required, particularly in execution and settlement. However, the distributed and transparent nature of token-underpinned ledgers facilitates near-instant settlement at a reduced cost compared to traditional finance.”

For these reasons, tokenized securities could become a multitrillion-dollar market by 2030, according to industry research.

The tokenized property market remains tiny in comparison to other tokenization trends. Source: RWA.xyz

Excluding stablecoins, the total value of RWAs onchain has reached $31.3 billion, according to RWA.xyz. This represents an increase of 94% over the past 30 days.

Related: Trump-era policies may fuel tokenized real-world assets surge

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Infini takes legal action after $50 million stablecoin exploit

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Stablecoin payment platform Infini filed a Hong Kong lawsuit against a developer and several unidentified individuals suspected of involvement in a hack that drained nearly $50 million in crypto assets.

On March 24, the Infini team sent an onchain message to the attacker, citing developer Chen Shanxuan and three unidentified persons with access to wallets involved in the exploit as defendants in the lawsuit. 

Infini said that the 49.5 million USDC (USDC) traced from the plaintiff’s funds are subject to an ongoing legal dispute and are contentious in nature. “Any subsequent holders of the said crypto assets (if any) once held in those wallets that they cannot claim the status of bona fide purchases without notice of the dispute,” Infini stated. 

The Hong Kong court sent an injunction order through an onchain message, a method to send legal notices to anonymous crypto wallets containing stolen funds. It also included a writ of summons that required the defendants to attend the return date hearing. 

Infini offered a 20% bounty to hacker

Following the $50 million hack on Feb. 24, Infini offered a 20% bounty to the hackers responsible for the attack. 

In an onchain message, Infini said it had gathered IP and device information about the attackers. The platform said it’s constantly monitoring the addresses involved and will take action if necessary. However, the payment firm offered a bounty to the attacker if they returned 80% of the funds. 

“Upon receipt of the returned assets, we will cease further tracking or analysis, and you will not face accountability,” Infini wrote. 

Still, despite the warnings, the attacker did not return any of the funds from the address specified by the Infini team. 

Related: $1.5B crypto hack losses expose bug bounty flaws

Infini exploit done amid largest crypto hack

The Infini attack came after Bybit suffered the largest recorded losses in a crypto hack. On Feb. 21, a hacker took control of Bybit’s multisignature wallet, stealing $1.4 billion in crypto assets. 

In a statement, FearsOff chief operating officer Marwan Hachem told Cointelegraph that the Infini hacker carefully chose the timing of the attack. The cybersecurity executive said the attack came only a few days after the Bybit hack, and the timing “was not by chance.” 

“With everyone busy on the investigation and recovery efforts of the $1.5B, the Infini attackers perceived their chances of success to be higher at that moment,” Hachem told Cointelegraph. 

Magazine: Ridiculous ‘Chinese Mint’ crypto scam, Japan dives into stablecoins: Asia Express

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