The U.S. Department of Justice is preparing to file criminal charges against Roman Storm, developer and co-founder of the cryptocurrency mixer Tornado Cash.
Charges Against Roman Storm
Federal prosecutors have confirmed that Storm is charged with conspiring to launder money, circumvent U.S. sanctions, and operate an unlicensed money transfer business through Tornado Cash.
Changes in Charges
Recent court documents reveal that prosecutors have agreed to drop part of the charge related to operating a money-transfer business without a license, acknowledging inconsistencies with federal regulations.
Historical Context and Consequences
Since 2019, FinCEN clarified that "non-custodial entities" like Tornado Cash are not classified as money transfer operators. Meanwhile, co-founder Alexey Pertsev was sentenced in May 2022 for laundering $1.2 billion and received a prolonged prison sentence. Tornado Cash was sanctioned by OFAC in August 2022 due to its involvement in money laundering, garnering significant attention from authorities.
The charges against Roman Storm highlight the increasing scrutiny on cryptocurrency operations and their legal compliance. The case remains ongoing, and its outcomes may impact the future of similar platforms.
