Tornado Cash Co-Founder Freed on Bail. The US authorities’ “novel legal theory has dangerous implications for all software developers,” Storm’s lawyer argued.
Roman Storm, one of the co-founders of the cryptocurrency mixer Tornado Cash, has been released on bail.
The man was seized earlier this week by US authorities on suspicion of facilitating money laundering operations and being linked with the Lazarus Group. A North Korean cyber collective.
Disappointed With the Arrest
Brian Klein, Roman Storm’s attorney, confirmed that his client is free on bail (without stating the amount of money posted for the release). He expressed his displeasure with the imprisonment, claiming that Storm contributed in the evolution of software. Furthermore, he believes that the US prosecutors’ “novel legal theory” may have an impact on the operations of all software developers.
Storm and his associate Roman Semenov (another Tornado Cash co-founder) were arrested on August 23, accused of conspiracy to commit money laundering. Conspiracy to operate an unauthorized money-transfer business. And conspiracy to violate know-your-customer (KYC) or anti-money-laundering programs.
Prosecutors further claimed that, despite repeated complaints from hacking victims, the crypto mixer remained operational.
Semenov is still at large, with agents from the Federal Bureau of Investigation’s New York field office attempting to track him down. He was just included to the US Office of Foreign Assets Control’s (OFAC) specially constructed list of sanctioned individuals.
We’re collaborating with law enforcement, both inside and outside of our agency, to find and apprehend this guy… “We will pursue whatever avenues — whatever we need to pursue — to arrest, whether domestic or international,” said James Smith. Assistant director in charge of the FBI’s New York field office.
Alexey Pertsev, Tornado Cash’s third co-founder, also encountered legal issues. He was arrested in Amsterdam last summer. Shortly after the OFAC sanctioned the crypto mixer for allegedly providing services to the North Korean hacking organization Lazarus.
The developer was imprisoned for nine months after the authorities denied his bail request. He is currently awaiting a trial to ascertain whether his entity had any ties to the Pyongyang-based organization.
What Are the Exact Numbers?
Tornado Cash is accused of facilitating more than $1 billion in criminal proceedings over the years, including hundreds of millions of cash for Lazarus.
According to Nicole Argentieri. Acting Assistant Attorney General. Crypto mixers of this type have become the “go-to method for criminals to conceal their ill-gotten gains.”