Department of Justice: ‘You Can’t Hide From Us Behind a Keyboard — Whether You’re a Hacker or Facilitator’
Roman Storm and Roman Semenov have been federally indicted on charges of conspiracy to launder money, conspiracy to violate sanctions laws, and operation of an unlicensed money-transmitting business. Storm was arrested in Washington, and Semenov remains at large.
- Storm and Semenov allegedly designed Tornado Cash to allow cyber criminals to anonymize transfers of funds on the blockchain.
- Tornado Cash was used to launder over $1 billion in digital currency, violating U.S. sanctions.
- Earlier this year, Tornado Cash played a role in laundering some of the $600 million stolen in a hack sponsored by North Korea.
- Storm and Semenov used deceptive compliance practices to continue processing illicit transactions despite sanctions screening being in place.
- The Department of Justice is cracking down on cryptocurrency-related cybercrime and sanctions evasion.
“As alleged, Tornado Cash was an infamous cryptocurrency mixer that laundered more than $1 billion in criminal proceeds and violated U.S. sanctions,” said Damian Williams, the U.S. attorney for the Southern District of New York. “Roman Storm and Roman Semenov allegedly operated Tornado Cash and knowingly facilitated this money laundering.”
Hot Take
The Department of Justice’s indictment of Roman Storm and Roman Semenov highlights the government’s determination to go after those involved in cryptocurrency-related cybercrime and sanctions violations. By targeting individuals who design and operate platforms like Tornado Cash, the DOJ is sending a clear message that you can’t hide behind a keyboard. This crackdown is likely to have a chilling effect on the activities of cybercriminals and facilitators in the crypto space.
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