Roman Storm has been arrested; Roman Semenov has been sanctioned.
The indictment alleges that Tornado Cash was used by North Korea’s Lazarus Group to launder hundreds of millions of dollars. Mixers such as Tornado CashIt wasn’t just criminals using Tornado Cash; privacy is a real concern for cryptocurrency. Once an identity is linked to a wallet, it’s possible to trace every transaction. That makes privacy tools popular among those who aren’t engaged in wrongdoing.
Storm suggested creating a version of Tornado with KYC / AML enabled, but Tornado’s unnamed venture capital investors were dismissive, saying, “I just don’t know if anyone will actually want this.” The investor added, “It would be unlikely as a fund that we’d use a ‘compliant mixer.’” Besides the Ronin hack, two other incidents were referenced, one in 2020 and one in 2021.
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