- Tornado Cash developer Roman Storm’s motion to dismiss a criminal indictment received pushback from the US DOJ.
- The US Department of Justice charged two developers with conspiracy to commit money laundering, operating an unlicensed money transmitter and sanction violation.
- Authorities allege North Korea’s Lazarus Group and other criminal entities have laundered funds through the crypto mixer.
The US Department of Justice (DOJ) accused Tornado Cash developers of conspiring to commit money laundering, conspiring to operate an unlicensed money transmitter and conspiring to violate sanctions law by the operation of a crypto mixing service.
Developer Roman Storm seeked to dismiss charges against him, to no avail. The court filing from Friday describes how Tornado Cash advertised its service, saying it “allows you to send Ethereum cryptocurrency 100% anonymously using groundbreaking, non-custodial technology based on strong cryptography!”
Tornado Cash founders faced with criminal indictment in latest update
In its Friday court filing, the DOJ alleges that the founders and developers of the project relinquished their ability to control the mixing pools in May 2020. The filing describes Tornado Cash service as a money transmitter (and an unlicensed one).
The transmitter transferred fixed-quantity customer deposits from one location to another, violating sanctions while developers conspire to operate the service, conspire to commit money laundering among other charges.
The defense argued that developers had languished control and did not have access to block the Lazarus group or criminal entities from using the service. The key argument was that merely developing code for a project is not the equivalent of operating a money laundering entity.
The Tornado Cash developer Storm is set to go to trial in September 2024 while co-founder and developer Semenov remains at large. Storm was arrested by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS) and charged in August 2023.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.