Roman Storm, Co-Founder of Tornado Cash, Arrested amidst Allegations of Illegal Movement of More Than $1 Billion

The US government has officially accused the founders of Tornado Cash, Roman Storm and Roman Semenox, of crimes including money laundering over $1 billion and sanctions violations. The charges were revealed by the US Attorney’s Office of the Southern District of New York, and Roman Storm has been arrested.

According to the indictment, the defendants created and operated Tornado Cash, a platform used to illegally move over $1 billion. They also assisted the Lazarus Group, a North Korean cybercrime group, in laundering hundreds of millions of dollars obtained from hacking.

U.S. Attorney Damian Williams stated, “Tornado Cash was an infamous cryptocurrency mixer that laundered more than $1 billion in criminal proceeds and violated U.S. sanctions. Roman Storm and Roman Semenov allegedly operated Tornado Cash and knowingly facilitated this money laundering.” He emphasized that although the founders claimed to offer a privacy service, they were aware that they were aiding hackers and fraudsters in concealing their illegal gains. Williams stressed that money laundering through cryptocurrency transactions is against the law and will result in prosecution.

Roman Storm and Roman Semenox played key roles in establishing and operating Tornado Cash, a service that enabled the movement of cryptocurrency without traceability. They funded and managed the main aspects of the service, which proved to be highly lucrative.

It is believed that around April and May of 2022, the Lazarus Group utilized the Tornado Cash service to launder large sums of money, likely amounting to hundreds of millions of dollars, acquired through hacking activities. The Lazarus Group, as a North Korean cybercrime group, faced restrictions in carrying out such financial operations.

The charges against the founders of Tornado Cash underscore the government’s commitment to combating money laundering using cryptocurrencies. This case serves as a stark reminder that engaging in illegal activities and attempting to conceal the proceeds through cryptocurrency transactions will not go unpunished. As law enforcement agencies continue to prioritize addressing financial crimes in the digital sphere, the consequences for those involved are becoming increasingly severe.

These developments mark a significant step in the government’s ongoing efforts to regulate the cryptocurrency industry and ensure compliance with existing laws and sanctions. It also serves as a warning to individuals or groups attempting to exploit digital assets for illicit purposes.