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US officials allege Tornado Cash facilitated $1bn in money laundering transactions for North Korea’s Lazarus Group.
The United States has charged two cofounders of the cryptocurrency mixer Tornado Cash with money laundering and other crimes a year after authorities banned the Russian-founded platform over its alleged support of North Korean hackers. Roman Semenov and Roman Storm have been charged with conspiracy to commit money laundering, conspiracy to commit sanctions violations, and conspiracy to operate an unlicensed money-transmitting business, the US justice department said in a statement on Wednesday. Storm, a naturalised US citizen, was arrested in Washington state on Wednesday. Semenov, a Russian national, has yet to be taken into custody. Alexey Pertsev, a third cofounder, was arrested in the Netherlands in August last year on money laundering charges.
US officials have accused Tornado Cash, which was sanctioned by the US treasury last year, of facilitating more than $1bn in money laundering transactions and laundering hundreds of millions of dollars for the hacking outfit Lazarus Group, which has been implicated in funding North Korea’s nuclear weapons programme. “While publicly claiming to offer a technically sophisticated privacy service, Storm and Semenov, in fact, knew that they were helping hackers and fraudsters conceal the fruits of their crimes,” US Attorney Damian Williams said…
Source: aljazeera.com