Two of the founders of a crypto asset mixer, Tornado Cash Service, have been charged for allegedly laundering over US$1 billion in proceeds from crime.
U.S. authorities unsealed an indictment today in the Southern District of New York charging Tornado’s founders — U.S. citizen Roman Storm and Russian citizen Roman Semenov — with conspiracy to commit money laundering, conspiracy to commit sanctions violations, and conspiracy to operate an unlicensed money transmitting business.
According to the indictment, their company facilitated more than US$1 billion in money laundering transactions, including hundreds of millions for the cybercrime group Lazarus Group, by allowing users to engage in anonymous crypto transfers designed to make the funds untraceable.
“As alleged in the indictment, the defendants operated a US$1-billion scheme designed to help other criminals launder and conceal funds using cryptocurrency, including by laundering hundreds of millions of dollars on behalf of a state-sponsored North Korean cybercrime group sanctioned by the U.S. government,” said U.S. attorney general Merrick Garland in a release.
The allegations have not been proven, and they are presumed to be innocent. Storm has been arrested, and is scheduled to appear in court today.
“Roman Storm and Roman Semenov allegedly operated Tornado Cash and knowingly facilitated this money laundering. While publicly claiming to offer a technically sophisticated privacy service, Storm and Semenov in fact knew that they were helping hackers and fraudsters conceal the fruits of their crimes,” alleged Damian Williams, U.S. attorney for the SDNY.
“Today’s indictment is a reminder that money laundering through cryptocurrency transactions violates the law, and those who engage in such laundering will face prosecution,” Williams added.