Harmony

United

Tornado Cash

Read

Tornado

<div class="cryptonews"> 
 <p class="is-style-lead">Founders of crypto mixer Tornado Cash, Roman Storm and Roman Semenov, are indicted on charges including money laundering, potentially facing 20 years in prison.</p> 
 <p>In the&nbsp;Aug. 23 press release, Roman Storm and Roman Semenov, the <a rel="noopener noreferrer nofollow" title="developers" href="https://thebittimes.com/tag/developers.html">developers</a> behind Tornado Cash, have been accused of processing hundreds of millions of dollars for North Korea’s Lazarus Group, a hacking entity subjected to sanctions.&nbsp;</p> 
 <div class="cn-block-related-link"> 
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> Lazarus Group may be responsible for Harmony Bridge hack 
 </div> 
 <p>The <a rel="noopener noreferrer nofollow" title="charge" href="https://thebittimes.com/tag/charge.html">charge</a>s stem from their purported establishment, management, and promotion of Tornado Cash, a cryptocurrency mixer reportedly enabling over $1 billion in <a rel="noopener noreferrer nofollow" title="money" href="https://thebittimes.com/tag/money.html">money</a> <a rel="noopener noreferrer nofollow" title="laundering" href="https://thebittimes.com/tag/laundering.html">laundering</a> transactions.</p> 
 <p>Both Storm and Semenov are being held with a single <a rel="noopener noreferrer nofollow" title="charge" href="https://thebittimes.com/tag/charge.html">charge</a> each of conspiring to engage in <a rel="noopener noreferrer nofollow" title="money" href="https://thebittimes.com/tag/money.html">money</a> <a rel="noopener noreferrer nofollow" title="laundering" href="https://thebittimes.com/tag/laundering.html">laundering</a> and conspiring to breach the International Economic Emergency Powers Act. If these <a rel="noopener noreferrer nofollow" title="charge" href="https://thebittimes.com/tag/charge.html">charge</a>s end in convictions, Strom and Semenov will have a prison sentence of up to 20 years.</p> 
 <p>Both parties are also facing a charge of conspiring to run an unlicensed money-transmitting business, which coincides with a sentence of five years.</p> 
 <p>On the same day of this announcement, Storm was apprehended in Washington state, as stated by the Department of Justice, while Semenov, a Russian citizen, remains evading authorities. Alexey Pertsev, the third co-founder, unconnected to this legal action, is slated for trial in Amsterdam concerning his role with Tornado Cash.</p> 
 <p>The indictment further claimed that Storm and Semenov consciously omitted the implementation of mandatory know-your-customer and anti-money laundering protocols, as mandated by law. Instead, they promoted the tumbler as a platform enabling untraceable and anonymous financial transactions.</p> 
 <div class="cn-block-related-link"> 
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> Judge favors Treasury in Coinbase-backed lawsuit over Tornado Cash sanctions 
 </div> 
 <h2 class="wp-block-heading" id="maintaining-sanctions-compliance">Maintaining sanctions compliance</h2> 
 <p>Criminals are increasingly turning to cryptocurrency mixers as a preferred means to conceal their unlawfully acquired proceeds. By design, crypto mixers enhance the privacy of their cryptocurrency transactions, amalgamating potentially traceable cryptocurrency funds with larger pools of funds. Such services frequently obfuscate fund transfers between platforms and typically do not necessitate Know Your Customer (KYC) verifications.</p> 
 <p>Therefore, although there were discussions about whether the Treasury was in bounds to sanction Tornado Cash, barring U.S. citizens from transactions with the service, a federal judge ruled that this&nbsp;decision would stand.</p> 
 <p>This action proves to be another case of the United States cracking down on the cryptocurrency industry, with the total weight of this ruling to unfold shortly.</p> 
 <div class="cn-block-related-link"> 
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Hacker drops control over Tornado Cash as they use it to wash stolen funds 
 </div> <span class="google-news-banner__label">Follow Us on Google News</span> 
</div>

Tornado Cash developers charged with money laundering in US

Table of Contents

TheBitTimes

Other articles published on Aug 24, 2023

Layer 1 DeFi Protocol Radix Reveals Irreversible Olympia Protocol Update Ahead of Babylon Mainnet...

Algorand (ALGO), Cardano Partnership Drives ALGO Price Up

Singapore Introduces New Regulatory Framework for Stablecoins!

Jerome Powell's Jackson Hole Speech; What To Expect?

Coinbase to Halt Trading in Six Cryptocurrencies in September!

Shiba Inu Token BONE Booming 1,000% On-Chain Amid New Shibarium Update

Join our free newsletter for daily crypto updates!