Tornado Cash co-founder pleads not guilty in money laundering case

Posted: September 7, 2023

• It was in August 2022 that the U.S. authorities sanctioned Twister Money.
• The second accused, Roman Semenov, is a fugitive outdoors of the U.S. The third accused, Alexey Pertsev, was arrested within the Netherlands final yr.

Roman Storm, co-founder of the cryptocurrency mixer Twister Money, pleaded not responsible in a New York District Courtroom, Inside Metropolis Press reported on 6 September. Storm confronted prices of conspiracy to commit cash laundering, conspiracy to commit sanctions violations, and conspiracy to function an unauthorized money-transmitting enterprise.

Decide: How do you plead?
Storm: Not responsible.
AUSA: Defendant with Twister Money helped North Korea’s hackers Lazarus Group…There will probably be discovery from GitHub

— Inside Metropolis Press (@innercitypress) September 6, 2023

The U.S. Division of the Treasury announced Storm’s arrest final month.

Prosecutors alleged within the courtroom that Twister Money is an notorious crypto mixer. It laundered over $1 billion in illicit proceeds, violating U.S. sanctions.

Lazarus Group, the infamous hacking outfit allegedly sponsored by the North Korean state, was aided by Storm, alongside with Twister Money, prosecutors claimed.

The choose dominated that Storm will probably be launched on a $2 million private recognizance bond secured by his Washington dwelling, co-signed by one “financially accountable” particular person. Nonetheless, he’ll keep below home arrest.

A trial will happen on 30 November.

The second accused, Roman Semenov, is a fugitive outdoors of the U.S. The native police arrested the third accused, Alexey Pertsev, within the Netherlands in August 2022.

Each Semenov and Pertsev are the opposite co-founders of Twister Money.

Teams oppose sanction, alleging a violation of free speech

It was in August 2022 that the Workplace of International Property Management (OFAC) sanctioned Twister Money. The enforcement barred U.S. residents from utilizing the crypto mixer.

At that time of time, the U.S. Treasury Division mentioned that the mixer offered a platform for laundering “proceeds of cybercrimes, together with these dedicated towards victims in the US.”

In October 2022, a Washington-based non-profit Coin Heart sued the Treasury over the motion. The plaintiffs acknowledged that Twister Money is critical to guard their proper to privateness.

In Might 2023, a bunch of Coinbase [COIN] backed plaintiffs additionally sued the Treasury. The U.S. sanction on Twister Money is an infringement on free speech and a violation of the First Modification, the plaintiffs alleged.

Authorities did not show sanctionable curiosity in immutable, open-source good contracts. The plaintiffs additionally claimed that the Treasury solely produced three examples of cash laundering from amongst tens of millions of transactions.

In an amicus temporary filed in June 2023, Blockchain Affiliation called the Treasury’s motion “unprecedented and illegal.”

Although there may be a variety of opposition to the sanction towards the mixer as is clear, the U.S. authorities are going forward with the authorized motion.