Overview:
Roman Storm, the co-founder of Tornado Cash, an Ethereum-based crypto mixer, has entered a plea of not guilty to charges relating to money laundering and sanctions violations. The plea occurred in the U.S. District Court for the Southern District of New York. Dutch authorities have provided “multiple terabytes” of materials, including encrypted files, that will be presented during the court case. The case involves classified materials and multiple victims of hacking. Alongside money laundering and sanctions violations charges, Storm has also been charged with conspiracy to operate an unlicensed money-transmitting business. The most significant charges pertain to sanctions violations, with the Department of Justice (DOJ) alleging that funds from Tornado Cash have supported North Korea’s Lazarus Group of hackers and their nuclear weapons program.
The Arrest and Bail:
Storm was arrested at the end of August and subsequently released on a $2 million bond. However, his Russian passport has been confiscated, and he is restricted from leaving specific regions in New York, New Jersey, Washington, and California. Additionally, Storm holds dual citizenship in the United States and Russia. Roman Semenov, Storm’s fellow co-founder, was also charged by the DOJ but has not yet been apprehended. The DOJ claims that both Storm and Semenov, through their involvement with Tornado Cash, have facilitated the laundering of over $1 billion. Another co-founder of the protocol, Alexey Pertsev, was arrested in Amsterdam shortly after Tornado Cash was sanctioned by the U.S. government in 2022 and is currently awaiting trial there.
