Tornado Cash co-founders charged by DOJ; one sanctioned by U.S. Treasury while the other arrested by FBI

The U.S. Department of Justice (DOJ) announced charges against 2 individuals who co-founded Tornado Cash connected Aug. 23.

The bureau unsealed an indictment charging Roman Storm and Roman Semenov with assorted wrongdoings related to creating, operating, and promoting Tornado Cash — a once-popular Ethereum-based coin mixer that obscured crypto transactions.

U.S. Attorney Damian Williams said:

“While publically claiming to connection a technically blase privateness service, Storm and Semenov successful information knew that they were helping hackers and fraudsters conceal the fruits of their crimes.”

The DOJ further noted that Tornado Cash handled $1 cardinal successful transgression proceeds and laundered funds connected behalf of North Korean cybercrime groups.

The agency’s implicit database of charges against the 2 Tornado Cash co-founders includes conspiracy to perpetrate wealth laundering, conspiracy to perpetrate sanctions violations, and conspiracy to run an unlicensed money-transmitting business.

The DOJ said that Storm has been arrested successful Washington State and volition beryllium presented successful court, portion Semenov has not yet been located oregon arrested.

The U.S. Treasury separately announced sanctions against Semenov, an enactment that volition prohibit different parties from transacting with him. The bureau noted that those who transact with Semenov whitethorn beryllium designated themselves.

A 3rd developer, Alexey Pertsev, was arrested successful the Netherlands successful August 2022. The DOJ did not denote charges against Pertsev today. Treasury mentioned Pertsev’s past apprehension but did not denote sanctions against him (or against Storm).

Treasury antecedently sanctioned mixer

The Treasury initially imposed sanctions connected Tornado Cash successful August 2022, efficaciously banning mainstream entree to the coin mixer.

However, Tornado Cash continued to run owed to its decentralized quality and reliance connected cryptocurrency. The level has adjacent survived different trials: Tornado Cash’s governance strategy was notably hacked successful May 2023, starring to a theft of little than $1 million. Governance coin holders aboriginal regained power done a caller proposal.

Data from DefiLlama suggests that Tornado Cash remains progressive with $245 cardinal successful full worth locked (TVL), down from its all-time precocious TVL of $1.1 billion.

The station Tornado Cash co-founders charged by DOJ; 1 sanctioned by U.S. Treasury portion the different arrested by FBI appeared archetypal connected CryptoSlate.