Tornado Cash Co-Founder Roman Storm Maintains Innocence in Money Laundering Case – Here’s the Latest

Author

Fredrik Vold

Author

Fredrik Vold

Author Profile

Share

Copied

Last updated:

October 23, 2023 05:03 EDT

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Roman Storm, co-founder of the sanctioned Ethereum-based crypto mixer Tornado Cash, has pleaded not guilty to charges related to money laundering and sanctions violations.

Storm pleaded not guilty in front of a judge in the U.S. District Court for the Southern District of New York on Wednesday, Inner City Press reported on X the same day.

According to the X account, “multiple terabytes” of materials from Dutch authorities, some of it encrypted, will be included in the upcoming court case.

The account also quoted from the court case that there are “some classified materials” in the case, and that it involves several victims of hacks.

LIVE CRYPTO IN THE COURTS: Now at arraignment of Roman Storm, charged with #NorthKorea sanctions violations with Tornado Cash. He has same counsel as Virgil Griffith had… Inner City Press will live tweet, thread below pic.twitter.com/VftL0ICtOO

— Inner City Press (@innercitypress) September 6, 2023

In addition to money laundering and sanctions violations charges, Storm has been charged with conspiracy to operate an unlicensed money-transmitting business.

Charged with helping Lazarus Group

The most serious of the charges are those related to sanctions violations, which the DOJ alleges has been facilitated for North Korea’s infamous Lazarus Group of hackers.

According to prosecutors, money from Lazarus Group that has passed through Tornado Cash has been used to fund North Korea’s nuclear weapons program.

Storm was arrested in late August, and released on a $2 million bond shortly after.

His Russian passport has been seized by the authorities, and he is restricted from traveling outside specific regions in the states of New York, New Jersey, Washington and California.

Storm is a dual US and Russian citizen.

Several arrests

Roman Storm was charged by the Justice Department (DOJ) together with his fellow co-founder Roman Semenov, who has yet to be arrested.

The DOJ alleges that the two through their involvement in the crypto mixer has facilitated laundering of more than $1 billion.

Tornado Cash Founders Charged with Money Laundering and Sanctions Violations

Roman Storm and Roman Semenov Charged with Operating the Tornado Cash Service, Laundering More Than $1 Billion in Criminal Proceedshttps://t.co/Z0C57jiI5C

— U.S. Department of Justice (@TheJusticeDept) August 23, 2023

Tornado Cash was first sanctioned by the US government in 2022, with another of the protocol’s co-founders, Alexey Pertsev, getting arrested in Amsterdam almost immediately afterwards.

Pertsev still remains in the country awaiting trial there.