A developer under the alias “Gunboats” has successfully redeployed Tornado Cash, the Ethereum-based crypto mixing protocol, onto the MegaETH blockchain’s public testnet. The move comes just days after the U.S. Treasury Department removed Tornado Cash and its associated wallet addresses from the Office of Foreign Assets Control (OFAC) sanctions list.
The MegaETH testnet, known for its high throughput capacity—reportedly handling up to 20,000 transactions per second—now hosts a fresh version of Tornado Cash, dubbed ETHTornado. Gunboats noted that no modifications were needed to the original smart contract code to facilitate the port, highlighting both the simplicity of redeploying decentralized applications and the robustness of blockchain development tools today.
In an online statement, Gunboats described the move as partially tongue-in-cheek but emphasized how easily the protocol could be revived, thanks to improved developer frameworks. The deployment was completed using the older Truffle toolkit, though Gunboats commented that modern tools like Foundry could make the process even more streamlined.
The rapid redeployment raised discussions within the crypto community about potential misuse, including concerns about mass wallet “dusting”—sending small, unsolicited funds to numerous addresses. Given that some blockchain projects automatically exclude wallets that have interacted with Tornado Cash from participating in airdrops, the new deployment has reignited debate over privacy tools’ implications on user eligibility and compliance protocols.
U.S. Treasury Reverses Tornado Cash Sanctions
Tornado Cash first drew international regulatory attention in 2022 when the U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned the protocol, accusing it of facilitating the laundering of over $7 billion in illicit funds. Authorities specifically alleged that Tornado Cash had been used by North Korea’s Lazarus Group to move millions in stolen digital assets, leading to sweeping sanctions that blacklisted not only the developers but also the protocol’s smart contracts—effectively barring U.S. entities from interacting with it.
The sanctions triggered a wave of criticism from privacy advocates and leading figures in the crypto industry, who warned that targeting open-source, decentralized code set a dangerous legal precedent. Several lawsuits soon followed, challenging the constitutionality of the action on grounds including free speech and due process violations.
In a welcomed shift, the U.S. Treasury formally removed Tornado Cash and its associated wallet addresses from the OFAC sanctions list on Friday 21st March 2025. The decision effectively reversed the sanctions imposed two years ago and comes after significant legal pushback and growing debate over how regulators should approach decentralized, privacy-focused protocols.
Community Reacts to Tornado Cash Relaunch
The swift reappearance of Tornado Cash on the MegaETH testnet sparked discussion within both developer circles and the broader crypto community. While some in the space have cautioned against the possible compliance complications, others welcomed the relaunch. Bread, MegaETH’s head of community and growth, expressed support for the move, suggesting on social media that the deployment could even be added to the project’s community wiki.
Gunboats, who clarified they are not based in the U.S., also downplayed any legal risk stemming from their actions, referencing the ongoing legal battle involving Tornado Cash developer Roman Storm. “Free Roman Storm,” they remarked in a post. At present, usage of the newly deployed protocol has remained limited, largely due to the absence of a user-friendly interface.
Quick Facts:
- Tornado Cash was redeployed on the MegaETH testnet by developer “Gunboats” after U.S. sanctions against the protocol were lifted.
- The new version, named ETHTornado, required no changes to the original smart contract code.
- MegaETH’s testnet boasts a processing capacity of up to 20,000 transactions per second.
