DOJ Accuses Tornado Cash Co-Creators of Money Laundering with Over $1 Billion in Cryptocurrency
The founders of Toronto Cash have been charged by the Department of Justice (DOJ) for money laundering and violating sanctions. Last year, the cryptocurrency mixer was accused of laundering more than $7 billion in stolen funds and faced US sanctions. The DOJ now claims that Toronto Cash enabled $1 billion in money laundering, with $455 million being funneled through the mixer by the Lazarus Group, a North Korean cybercrime organization. The charges include conspiracy to commit money laundering, conspiracy to commit sanctions violations, and conspiracy to operate an unlicensed money transmitting business. While co-founder Roman Storm has been arrested in Washington State, the other co-founder, Roman Semenov, remains at large.
The US government is trying to send a strong message about using cryptocurrency for illegal purposes. “These charges should serve as yet another warning to those who think they can turn to cryptocurrencies to cover up their crimes and conceal their identities, including cryptocurrency mixers: it doesn’t matter how sophisticated your system is or how many attempts you’ve made to anonymize yourself, the Department of Justice will find you and hold you accountable for your crimes,” Attorney General Merrick B. Garland said in a statement.
If you’re not familiar, a cryptocurrency mixer is a service that makes it difficult to trace funds from their origin to a new owner. Most blockchains, such as Bitcoin and Ethereum, are visible, so the mixer helps people hide their cash flow – whether it’s a sensible or illegal activity. Cryptocurrency analysis firm Chainalysis found that in 2022, crypto addresses known for illegal activity used mixers in nearly 10 percent of transactions.
