{"id":2010611,"date":"2023-08-24T10:52:02","date_gmt":"2023-08-24T14:52:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/founders-of-tornado-cash-crypto-firm-accused-of-money-laundering-aiding-north-korean-hackers\/"},"modified":"2023-08-24T10:54:14","modified_gmt":"2023-08-24T14:54:14","slug":"founders-of-tornado-cash-crypto-firm-accused-of-money-laundering-aiding-north-korean-hackers","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/founders-of-tornado-cash-crypto-firm-accused-of-money-laundering-aiding-north-korean-hackers\/","title":{"rendered":"Tornado Cash founders accused of aiding North Korean hackers and money laundering."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffounders-of-tornado-cash-crypto-firm-accused-of-money-laundering-aiding-north-korean-hackers%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2010611&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<p>Two of the three \u200cfounders of cryptocurrency mixing service Tornado Cash were charged by the Department of Justice (DOJ) on Aug. 23 for allegedly facilitating\u200d hackers \u2064and fraudsters to launder \u200cmore \u200bthan $1 \u2064billion.<\/p>\n<p>Roman Storm, from Washington state, and Roman Semenov, a Russian native, \u2063were charged \u2064with conspiracy to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/breaking-president-trump-gives-pardons-to-73-individuals-and-commutes-another-70-sentences-steve-bannon-is-included\/\" title=\"BREAKING: President Trump Gives Pardons to 73 Individuals and Commutes Another 70 Sentences \u2013 Steve Bannon Is Included\">commit money laundering<\/a>, conspiracy to commit sanctions violations,\u2063 and conspiracy to \u200coperate an <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/satanic-church-founder-sentenced-to-18-months-prison-for-money-transmitting-business\/\" title=\"Satanic Church Founder Sentenced to 18 Months Prison for \"Money-Transmitting Business\"\">unlicensed money-transmitting business<\/a>.<\/p>\n<p>Mr. Storm was arrested in the state\u200d of Washington and \u2062was scheduled \u200cto appear before the Western District of\u200c Washington on Wednesday, according to the DOJ. Mr. Semenov remains at large and \u2062is believed to be in Dubai, <a href=\"https:\/\/apnews.com\/article\/cryptocurrency-treasury-crypto-sanctions-russia-north-korea-88115029d0a033b7b8b3e3a34dccf00c\" target=\"_blank\" rel=\"noopener\">The \u200bAssociated Press<\/a> reported.<\/p>\n<div class=\"shortcode\">\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\">\n<div class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related Stories<\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\"><a href=\"http:\/\/www.theepochtimes.com\/opinion\/china-linked-crypto-exchange-binance-in-trouble-5461910\">China-Linked Crypto Exchange\u2063 Binance in Trouble<\/a><\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">8\/15\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\"><a href=\"http:\/\/www.theepochtimes.com\/opinion\/china-linked-crypto-exchange-binance-in-trouble-5461910\"><\/a><\/div>\n<\/p><\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\"><a href=\"http:\/\/www.theepochtimes.com\/us\/371-charged-for-covid-19-fraud-totaling-836-million-doj-5479353\">371 Charged \u2064for \u200cCOVID-19 Fraud Totaling $836 Million: DOJ<\/a><\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">8\/23\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\"><a href=\"http:\/\/www.theepochtimes.com\/us\/371-charged-for-covid-19-fraud-totaling-836-million-doj-5479353\"><\/a><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>According to prosecutors, from at least 2019 until August 2022, Mr. Storm and Mr. Semenov developed,\u200c marketed, and operated the cryptocurrency mixing service Tornado Cash, which was able to mix cryptocurrencies together, thus\u200b concealing\u200b the origin or \u200cdestination of the payment and allowing users to carry out anonymous financial transactions.<\/p>\n<p>Although the\u2063 service \u2062was used by many as a legitimate way to\u2062 protect their privacy, prosecutors allege that Mr. Storm\u200b and \u200dMr. Semenov were \u200caware that\u200b Tornado \u2062Cash \u2063was also \u200dregularly \u2062being \u2063used as a &#8220;safe haven&#8221;\u200c for criminals \u200cto\u200b engage in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/founders-of-tornado-cash-crypto-firm-accused-of-money-laundering-aiding-north-korean-hackers\/\" title=\"Tornado Cash founders accused of aiding North Korean hackers and money laundering.\">large-scale money laundering<\/a> and sanctions evasion.<\/p>\n<p>Specifically, the DOJ\u200d alleged the two company founders were aware that between April and May of last year, U.S.-sanctioned North Korean hacking \u2064group Lazarus\u200c was using Tornado Cash to send and receive millions of dollars \u2064in \u2064hacking proceeds.<\/p>\n<h2>$1 Billion \u2062in Money Laundering Transactions<\/h2>\n<p>&#8220;Storm and \u2062Semenov \u2064allegedly knew that the \u2063Tornado Cash service they were operating was engaging in these sanctions-violating transactions,&#8221;\u2063 prosecutors said. &#8220;They\u2063 implemented a \u2063change in \u200cthe\u2063 service so they could make a\u2064 public announcement\u200c that they were compliant with sanctions, but in their \u200dprivate chats they agreed that \u2063this\u200d change would be ineffective.&#8221;<\/p>\n<p>&#8220;They then continued to operate the Tornado Cash service and \u2064facilitate \u2062hundreds of \u2063millions\u2064 of \u2063dollars in further sanctions-violating transactions, helping the Lazarus Group \u200dto transfer criminal proceeds from a cryptocurrency wallet that had been designated \u2062by the Office of Foreign Assets Control (OFAC) as blocked property,&#8221; prosecutors said.<\/p>\n<p>The DOJ further accused Mr.\u200b Storm and Mr. Semenov of having failed to \u2063implement know-your-customer or <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/lawmakers-introducing-legislation-targeting-enablers-of-international-corruption-after-pandora-papers-findings\/\" title=\"Lawmakers Introducing Legislation Targeting Enablers of International Corruption After Pandora Papers Findings\">anti-money laundering programs<\/a> as \u200drequired by law, which allowed \u200dcriminals to\u200d launder billions in funds through Tornado\u200c Cash, despite regularly receiving complaints and requests for help from\u200c victims\u2064 of \u200dhacking and \u2064other \u200ccybercrime.<\/p>\n<p>Overall, Tornado Cash, according to the DOJ, facilitated more than \u200c$1\u200d billion in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/u-s-attorneys-bust-crypto-money-laundering-ring\/\" title=\"U.S. Attorneys Bust Crypto Money Laundering Ring\">money laundering transactions<\/a>.<\/p>\n<h2>&#8216;Neither Untraceable Nor \u2064Anonymous&#8217;<\/h2>\n<p>Tornado Cash was sanctioned in August 2022 by \u2062the Treasury \u200dDepartment\u2019s\u2064 Office of Foreign Assets Control (OFAC) which said the mixing service had been used to \u2063launder more than $7 billion worth of virtual currency since its \u2063creation in 2019.<\/p>\n<p>The government\u2064 later issued guidance\u2062 for \u200busers who were using \u2063the service for lawful\u2064 transactions to lawfully withdraw their\u2064 funds.<\/p>\n<p>&#8220;These charges should serve as yet another warning to those who think\u2062 they can turn \u2064to cryptocurrency\u2062 to conceal their crimes and hide\u200d their identities, including cryptocurrency mixers: it does not matter how\u200c sophisticated your scheme is or how\u200b many attempts you have made to\u200c anonymize yourself, the Justice \u200dDepartment will find you.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>violations, and operating an unlicensed money transmitting business. The DOJ alleges that Tornado Cash enabled criminals to hide the origins of illicit funds through its privacy-focused platform. If convicted, the founders could face severe penalties, including imprisonment and substantial fines, highlighting the increasing scrutiny on cryptocurrency services.<\/p>\n","protected":false},"author":69,"featured_media":2010612,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2010611","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2010611","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/69"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2010611"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2010611\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2010612"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2010611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2010611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2010611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}