Tornado Cash Co-Founder Braces for Legal Battle Amid Crypto Sanctions Overreach Claims
Summary:
Tornado Cash co-founder, Roman Storm, revealed his apprehension about his pending criminal trial slated for September 2024 in a recent social media post. Facing three charges, including conspiracy to money laundering, Storm is preparing a strong defense with his legal team. The case has drawn support from the cryptocurrency community, garnering over $28,000 in donations for the pair's legal defense. Meanwhile, Storm's co-conspirator, Roman Semenov, remains at large. The charges link Tornado Cash to aiding the Lazarus Group from North Korea in bypassing U.S. imposed sanctions. This has led crypto advocates to sue the U.S government, alleging an overreach in imposing sanctions.
Roman Storm, the co-founder of the debated cryptocurrency platform Tornado Cash, has hinted at feeling anxious about his imminent criminal proceedings, appealing for backing from privacy rights proponents. In a Jan. 22 release on X (previously known as Twitter), Storm stated his legal representatives are gearing up for a robust defense in his trial scheduled for September 2024. Storm, the co-creator of Tornado Cash, is facing three accusations including conspiracy to money laundering, running an unauthorized money-transferring enterprise, and contravening the International Emergency Economic Powers Act – to all these charges, he has maintained a not guilty response. In Storm's words, "This legal fight will have implications for anyone deeply involved in Web3 development like myself or those who value software and privacy. This case is set to shape legal precedents for future years. 2024 will be a critical year for me. Honestly, I'm terrified, but I also have hope that our community will show their support. Please contribute to my legal defense fund."
Storm was formally charged in August 2023 along with his purported accomplice Roman Semenov, who was still on the run when news was last reported. Following his apprehension, Storm posted a $2 million bail and has a trial set to commence on September 23. Tornado Cash's other co-founder Alexey Pertsev was detained by Dutch authorities in August 2022, but was freed in April 2023 ahead of his trial. As per the crowdfunding site Juicebox, supporters had made donations exceeding $28,000 towards the legal representation of Pertsev and Storm as of January 22.
The allegations against Storm and Semenov revolve around claims that Tornado Cash assisted North Korean hacker collective, Lazarus Group, to circumvent U.S. sanctions. The U.S. Treasury's Office of Foreign Assets Control (OFAC) included the cryptocurrency platform in its Specially Designated Nationals list in August 2022. After OFAC's action, several cryptocurrency supporters filed lawsuits against the U.S. administration, alleging overreach in enforcing sanctions. Two such lawsuits initiated by six investors and Coin Center are presently being appealed after unsuccessful summary judgments.
Published At
1/22/2024 11:07:53 PM
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