Binance, one of the leading cryptocurrency exchanges, has recently announced the removal of several tokens, including Tornado Cash (TORN), leading to a substantial 50.76% drop in its price within 24 hours. The decision to delist tokens is part of Binance’s routine reviews to ensure compliance with high standards, and while specific reasons for Tornado Cash’s removal were not disclosed, it was highlighted among the tokens facing delisting.
In a statement, Binance noted, “At Binance, we periodically review each digital asset we list to ensure that it continues to meet the high level of standard we expect. 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. We believe this best protects all our users.”
The four tokens delisted alongside Tornado Cash were BitShares (BTS), PERL.eco (PERL), and Waltonchain (WTC).
Tornado Cash has faced a tumultuous period in recent times, marked by a series of challenges. On May 21, 2023, the TORN token experienced a more than 30% decline after a malicious hacker exploited its governance structure, pilfering over 480,000 from its vault. The hacker was suspected of funneling their ill-gotten gains into the Tornado Cash mixer.
The cryptocurrency has also come under scrutiny due to its association with frequent use by hackers. This has raised concerns in the wider crypto community and contributed to a decline in confidence surrounding Tornado Cash.
Adding to its woes, in August 2022, the United States Treasury’s Office of Foreign Asset Control (OFAC) imposed sanctions on Tornado Cash, further complicating its standing in the crypto market.
The recent delisting by Binance and the subsequent sharp decline in Tornado Cash’s price highlight the challenges faced by cryptocurrencies dealing with regulatory uncertainties and security vulnerabilities. Investors and users are now closely watching how Tornado Cash responds to these setbacks and whether it can regain market trust in the evolving landscape of the cryptocurrency industry.