Tornado Cash developers Roman Storm and Roman Semenov have been charged with money laundering and sanctions violations, with Storm already being arrested, as the US Department of Justice alleges that over $1 billion in transactions passed through the privacy mixer, including funds for North Korea's Lazarus Group.
Two men have been charged by federal authorities for running a money-laundering scheme that involved moving over $1 billion, including cryptocurrency, for North Korean hackers, according to an indictment filed in Manhattan federal court.
The co-founders of Tornado Cash, a blockchain privacy tool, have been charged by the U.S. for their involvement in creating this software, facing counts of conspiracy to commit money laundering and other charges.
Ethereum mixer Tornado Cash co-founders Roman Storm and Roman Semenov have been charged with money laundering over $1 billion in criminal proceeds, while FTX-affiliated Farmington State Bank has been shut down for attempting to create a stablecoin without proper approval. Prime Trust has filed for bankruptcy after losing $6 million of customer money in Terra-Luna gambling, and Binance has lost its UK payment processor Checkout.com over money laundering concerns. Furthermore, Sam Bankman-Fried plans to blame FTX's lawyers for his decision-making in his legal defense. The SEC has sued Titan for promising unrealistic investment returns, Coinbase has suspended certain stablecoins for Canadian users, and the Centre consortium that issued the USDC stablecoin is being dissolved.
Tornado Cash co-founders face charges of money laundering and sanctions violations, FTX founder Sam Bankman-Fried struggles in prison, and the identity of a Bitcoin whale holding $3 billion is revealed.
One of the founders of crypto mixer Tornado Cash, Roman Storm, has been released on bail after being charged with money laundering $1 billion, and his case could have implications for all software developers.
The Tornado Cash indictments against the co-founders and developers behind the decentralized mixer have raised questions about how the federal government will regulate decentralized trading platforms, but the case may be more focused on allegations of money laundering for North Korea rather than a broader attack on privacy tools.
A phisher who stole $24.2 million worth of staked Ethereum is using the crypto mixer Tornado Cash to move their stolen assets, according to crypto security firm PeckShield.
