“The U.S. prosecutors’ novel legal theories have dangerous implications for all software developers,” Storm’s attorney suggested. Roman Storm, one of the co-founders of cryptocurrency mixer Tornado Cash, is currently out of jail and out on bail. U.S. authorities arrested him earlier this week on suspicion that the company facilitated money-laundering activities and was associated with the North Korean hacking group Lazarus Group.
‘Disappointed by the arrest’
Roman Storm’s attorney, Brian Klein, has announced that his client has been released on bail (the bail amount was not disclosed). He expressed disappointment at being imprisoned and said Storm had helped develop the software further. Additionally, he believes the US prosecutor’s “new legal theory” could affect the way all software developers operate their businesses.
U.S. law enforcement arrested Storm on August 23 and charged him and his partner, Roman Seminov, with conspiracy to launder money, operate an unauthorized money transfer business, and violate U.S. sanctions. another Tornado Cash co-founder).
Prosecutors also suggested that the cryptocurrency mixer had not implemented know-your-customer (KYC) or anti-money laundering programs, despite numerous complaints from hacker victims.
Semenov remains on the run while agents from the Federal Bureau of Investigation’s New York branch attempt to locate him. The U.S. Office of Foreign Assets Control (OFAC) recently added him to a specially prepared list of sanctioned persons.
“We are working with law enforcement agencies both inside and outside the agency to find and arrest this individual. said James Smith, Deputy Director of the FBI New York Field Office.
Alexey Pertsev (his third co-founder of Tornado Cash) also had legal troubles. He was arrested in Amsterdam last summer shortly after OFAC imposed sanctions on cryptocurrency mixers for allegedly providing services to the North Korean hacking group Lazarus.
The developer was detained for nine months after authorities refused bail. He is currently awaiting trial to determine whether his company had ties to North Korea-based entities. What’s the exact number? Tornado Cash’s primary charge is facilitating over a billion dollars in criminal cases over the years, including hundreds of millions against Lazarus.
Deputy Assistant Attorney General Nicole Argentieri argued that cryptocurrency mixers of this kind have become “a preferred means for criminals to hide their ill-gotten gains.” ”
“Defendants used Tornado Cash as a safe haven for criminals to hide traces of funds associated with criminal activities such as computer hacking and wire fraud,” it added.