Tornado Cash co-founder, Roman Storm, has been granted bail after being arrested earlier this month. This news comes as a relief to many in the cryptocurrency community who have been closely following the legal proceedings. Tornado Cash is a popular privacy-focused decentralized application on the Ethereum blockchain, providing users with a way to anonymize their funds. The release on bail allows Storm to continue his work on Tornado Cash while the legal case unfolds. This development has sparked interest among crypto enthusiasts as they eagerly await further updates on the situation. Stay tuned for more news on this captivating story.
Tornado Cash Co-Founder Released on Bail
Roman Storm, one of the co-founders of the popular crypto mixer Tornado Cash, has been released on bail after being detained by US authorities. Storm was arrested on allegations that his involvement with the Lazarus Group, a North Korean hacking collective, facilitated money laundering operations.
Expressing Disappointment
Brian Klein, attorney for Roman Storm, expressed his disappointment with the arrest. Klein stated that his client played a key role in software development and believes that the prosecutors’ legal theory could have dangerous implications for all software developers. He took to Twitter to announce Storm’s release on bail, emphasizing his concerns for the broader industry.
Pleased to share that my client Roman Storm is already out on bail, although I remain very disappointed that the prosecutors charged him because he helped develop software – their novel legal theory has dangerous implications for all software developers.https://t.co/elmU8VqpYq
— Brian Klein (@brianeklein) August 24, 2023
According to the US authorities, Roman Storm and his associate Roman Semenov, another co-founder of Tornado Cash, were charged with conspiracy to commit money laundering, conspiracy to operate an unauthorized money-transfer business, and conspiracy to violate US sanctions. The prosecutors also pointed out that Tornado Cash allegedly failed to implement proper AML and KYC procedures despite receiving multiple complaints related to hacking victims.
Challenges in Identifying Semenov’s Whereabouts
While Roman Storm has been released on bail, Roman Semenov remains at large. Law enforcement agents at the Federal Bureau of Investigation’s New York field office are actively trying to locate and arrest him. Semenov was recently added to the US Office of Foreign Assets Control’s (OFAC) sanctions list.
“We’re working with law enforcement, outside and inside of our agency, trying to locate and arrest this individual… We will work whatever avenues — whatever we need to do — to arrest, whether it be domestic or international,” James Smith, assistant director in charge of the FBI’s New York field office, stated.
Another co-founder of Tornado Cash, Alexey Pertsev, has also faced legal troubles. He was detained in Amsterdam last summer after the OFAC imposed sanctions on Tornado Cash for allegedly providing services to the Lazarus Group.
The Alleged Amounts Involved
The allegations against Tornado Cash suggest that it facilitated over $1 billion in criminal proceedings, with a significant portion of the funds linked to the Lazarus Group. Acting Assistant Attorney General Nicole Argentieri argued that crypto mixers like Tornado Cash have become a preferred method for criminals to hide their illicit gains.