Tornado Cash Founders Secure Over $350K For Legal Battle Amidst Money Laundering Allegations

The legal defense fund for Tornado Cash developers Roman Storm and Alexey Pertsev has garnered substantial support, surpassing $350,000 in funds. This initiative has gained public backing from Edward Snowden, the renowned former NSA whistleblower.

Notably, Tornado Cash's co-founders, Roman Storm and Roman Semenov, are currently facing serious allegations of money laundering and sanctions violations in the United States. The U.S. Treasury has sanctioned Tornado Cash for its purported role in assisting North Korea-affiliated hacking groups in laundering millions of stolen cryptocurrencies.

Edward Snowden, in a post on January 23, rallied support for Roman Storm's legal defense fund. The co-founder of Tornado Cash is entangled in legal challenges, with Snowden emphasizing the importance of standing behind Storm, asserting that "privacy is not a crime."

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Roman Storm's Plea for Support

Roman Storm, in a separate appeal on January 22, urged his supporters to contribute to the legal defense fund, recognizing the pivotal nature of the case, noting that its outcome "will set a precedent for years to come." Facing multiple federal charges related to Tornado Cash, Storm is scheduled for trial in the U.S. in September 2024.

Storm, a dual U.S. and Russian citizen, was arrested by the Department of Justice (DOJ) and placed under house arrest in Washington State. He has pleaded not guilty to charges of money laundering and sanctions violations.

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Indictment and Accusations

The indictment alleges that Tornado Cash facilitated the laundering of over $1 billion worth of crypto in criminal proceeds. Storm and Semenov are accused of intentionally designing Tornado Cash to enable cybercriminals to anonymize blockchain fund transfers. 

This includes reported involvement in laundering a portion of the $600 million stolen in a March attack on the Ronin Network, an Ethereum sidechain. Alexey Pertsev, another Tornado Cash developer, was arrested in the Netherlands in August 2023 following the sanctioning of the privacy tool by U.S. authorities.

Despite the challenges, Roman Storm remains resolute as he prepares for a major trial in the United States. On January 22, Storm expressed his determination to mount a "strong defense" against charges of money laundering and violating the International Emergency Economic Powers Act.

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Coin Center's Legal Challenge and U.S. Government's Stance

To challenge the sanctioning of Tornado Cash, the Coin Center, a non-profit organization focused on cryptocurrency policy, has argued that restrictions imposed by Treasury's Office of Foreign Assets Control (OFAC) negatively impact Americans' ability to privately transact cryptocurrencies.

In October 2022, Coin Center initiated legal action against OFAC over Tornado Cash sanctions. However, in October 2023, a U.S. court ruled in favor of OFAC, affirming its authority to include the crypto mixer in its sanctions list.

Meanwhile, U.S. Attorney Damian Williams labeled Tornado Cash an "infamous cryptocurrency mixer" and accused Storm and Semenov of knowingly facilitating money laundering and violating U.S. sanctions.