Tornado Cash Co-Founders Charged with Money Laundering and Sanctions Violations

Two co-founders of Tornado Cash, Roman Storm and Roman Semenov, have been charged with conspiracy to commit money laundering and sanctions violations. The charges stem from their alleged creation, operation, and promotion of the crypto mixer, which facilitated over $1 billion in money laundering transactions. The US Attorney’s Office stated that Tornado Cash also laundered hundreds of millions from the Lazarus Group, a North Korean cybercrime organization.

Key Points:

Roman Storm and Roman Semenov knowingly aided money laundering through Tornado Cash.
Storm has been arrested in the State of Washington, while Semenov remains at large.
Alexey Pertsev, Tornado Cash’s alleged third co-founder, was arrested in the Netherlands in August on money laundering charges.
Storm’s lawyer expressed disappointment with the charges, claiming they have dangerous implications for software developers.
The Office of Foreign Asset Control (OFAC) sanctioned Roman Semenov and banned Americans from using Tornado Cash in August 2022.

Hot Take:

The charges against the Tornado Cash co-founders highlight the ongoing efforts of law enforcement agencies to crack down on money laundering in the cryptocurrency industry. This case serves as a warning to those who think they can use cryptocurrencies to conceal their crimes. As the Justice Department and FBI continue to dismantle criminal infrastructure, the accountability for facilitating illegal activities will increase. The dismissal of the appeal to lift sanctions on Tornado Cash further solidifies the government’s stance on cracking down on crypto mixers.