Roman Storm, a co-founder of the cryptocurrency mixing service Tornado Cash, has forcefully denied accusations of money laundering and conspiring with North Korea.
On Friday, March 29, 2024, Storm’s legal team filed a motion to dismiss. They argue that Storm, as the founder, built Tornado Cash as a privacy tool and is not responsible for its potential misuse.
Lazarus Group Tornado Cash Usage is Unavoidable
The motion refutes allegations of Storm’s involvement in the laundering of over $1 billion and challenges claims of conspiring with North Korean cybercrime groups. Storm’s attorneys assert that these accusations are baseless.
The case surrounding Tornado Cash started when OFAC sanctioned the crypto mixer service in August 2022. At that time, OFAC said that Tornado Cash had been involved in laundering funds worth $7 billion.
OFAC’s action sparked debate among the crypto community, arguing that the case sets a dangerous precedent for developers of privacy-focused software within the crypto ecosystem. Big industry players, like Coinbase, also supported Tornado Cash.
In April 2023, Coinbase voiced its support for reopening Tornado Cash’s access for the US citizen. They even claimed that they would support the legal process from a financial perspective.
This action from the crypto community and industry players is understandable. It is crucial to consider the potential impact of the Tornado Cash case on the principle of decentralization, which is one of the core values of the crypto industry.
However, the US government is not the only jurisdiction tough on crypto mixers. BeInCrypto previously reported that the South Korean government has restricted crypto mixer services.
