DLC Roman Storm, co-founder of Tornado Cash, has been released on bail -

Roman Storm, co-founder of Tornado Cash, has been released on bail

Roman Storm, a co-founder of the cryptocurrency mixing service Tornado Cash, has been released on bail, as confirmed by his lawyer Brian Klein on social media. This development follows Storm’s recent arrest in the United States on charges of money laundering and violating sanctions regulations through the operation of an unlicensed money-transmitting platform.

Storm, alongside another co-founder Roman Semenov, had been indicted for conspiring to launder money and breach sanctions laws through the unlicensed operation of Tornado Cash. This platform is alleged to have laundered over $1 billion in digital currency, including substantial amounts channeled to the Lazarus Group, a hacking entity linked to North Korea.

Prosecutors claim that Storm and Semenov designed Tornado Cash to facilitate anonymous transfers of cryptocurrency, catering to cybercriminals seeking to anonymize their transactions. While Storm, aged 34, was apprehended in Washington state, Semenov, a 35-year-old Russian national, remains at large.

In his statement on X, Klein expressed his satisfaction with Storm’s release but also voiced his dismay that his client was charged for contributing to software development. He cautioned that such a move by prosecutors sets a worrisome precedent for all software developers, hinting at potential unintended implications.

Storm’s cooperation with the government’s investigation and his denial of any criminal wrongdoing have been underscored by his lawyer in a separate statement.

The United States previously sanctioned both the Lazarus Group in 2019 and Tornado Cash in 2022. Additionally, on Wednesday, the Treasury Department sanctioned Semenov for providing material support to both entities.

Leave a Reply

Your email address will not be published. Required fields are marked *