Benzinga - The founders of Tornado Cash, Roman Storm and Roman Semenov, have been indicted for allegedly operating a cryptocurrency mixer that laundered more than $1 billion, including funds from the notorious North Korean cybercrime group, Lazarus Group.
U.S. Attorney Damian Williams said that Tornado Cash was an infamous cryptocurrency mixer that laundered more than $1 billion in criminal proceeds and violated U.S. sanctions.
Storm and Semenov knowingly facilitated this money laundering, and they were helping hackers and fraudsters conceal the fruits of their crimes.
The indictment asserts that Tornado Cash, a service that promised untraceable and anonymous financial transactions, was utilized to launder vast sums.
Despite being aware of the illicit nature of these transactions and receiving complaints from cybercrime victims, Storm and Semenov allegedly chose not to implement any controls.
FBI Director Christopher A. Wray emphasized the global reach of law enforcement, saying, "Today’s announcement should remind criminal organizations everywhere in the world that they are neither untraceable nor anonymous. The FBI is going to keep dismantling the infrastructure used by cyber criminals to commit and profit from their crimes."
The indictment further alleges that in April and May 2022, the Lazarus Group used Tornado Cash to launder hundreds of millions of dollars.
Also Read: Can This Bitcoin And Ether Dip Make You A Millionaire? 'Dave The Wave' Says Yes
Despite knowing about these sanctions-violating transactions, Storm and Semenov continued to operate Tornado Cash, even assisting the Lazarus Group in transferring funds from a cryptocurrency wallet that had been flagged by the Office of Foreign Assets Control.
Acting Assistant Attorney General Nicole M. Argentieri highlighted the increasing use of cryptocurrency mixers by criminals, saying, “Cryptocurrency mixers have become the go-to method for criminals to conceal their ill-gotten gains. The Criminal Division will continue to prioritize the investigation and prosecution of those who seek to criminally exploit the cryptocurrency ecosystem.”
While Storm has been arrested in Washington, Semenov remains at large.
Read Next: From $26B To Living On Bread And Water: SBF Can't Prepare For Trial, Lawyer Says
Join Benzinga's Future of Digital Assets in NYC on Nov. 14, 2023 to stay updated on trends like AI, regulations, SEC actions & institutional adoption in the crypto space. Secure early bird discounted tickets now!
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.