Tornado Cash 'laundered over $1B' in criminal cryptocurrency

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Tornado Cash 'laundered over $1B' in criminal cryptocurrency
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Founder Roman Storm cuffed on laundering, sanctions busting charges

[PDF], prosecutors said Tornado Cash boasted about its anonymizing features and that it could make money untraceable, and that Storm and Semenov refused to implement changes that would dial back Tornado's thief-friendly money-laundering capabilities and bring it in line with financial regulations.

"Tornado Cash failed to establish an effective [anti money laundering] program or engage in any [know your customer] efforts," Dept of Justice lawyers argued. Changes made publicly to make it appear as if Tornado Cash was legally compliant, the DoJ said, were laughed off as ineffective in private messages by the charged pair.

"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," said US Attorney Damian Williams."Today's indictment is a reminder that money laundering through cryptocurrency transactions violates the law, and those who engage in such laundering will face prosecution.

in The Netherlands shortly after the US sanctioned the crypto-mixing site. Persev was charged in that Euro nation with facilitating money laundering and concealing criminal financial flows, and is now out of jail on monitored home release awaiting trial.

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