- Arrested Tornado Cash co-founder Roman Storm is now out on bail.
- Storm’s lawyer argued that the charges against him were unfair and could affect other software developers.
- The US alleges that Tornado Cash facilitated over $1 billion in money laundering.
Roman Storm, one of the founders of Tornado Cash, arrested for crimes of money laundering allegation on Wednesday, is now out on bail. Prominent U.S. attorney Brian Klein shared the development with the crypto community in a recent tweet.
“Pleased to share that my client Roman Storm is already out on bail,” Klein remarked. However, the lawyer expressed great displeasure that the U.S. authorities charged the founders of Tornado Cash. According to Klein, their offense was simply helping to develop the Tornado Cash software.
Furthermore, Klein argued that the actions of the U.S. government would have stern implications for the software development industry. In his words:
I remain very disappointed that the prosecutors charged him because he helped develop software – their novel legal theory has dangerous implications for all software developers.
On Wednesday, August 23, the United States Justice Department indicted Roman Storm and Roman Semenov for fraud. The attorneys argued that the duo violated sanctions and conspired to operate an unlicensed money-transmitting enterprise. The allegation also included conspiracy to commit money laundering.
The charges stem from their purported involvement in creating, managing, and promoting Tornado Cash, a crypto-mixing service. The prosecutors contended that the platform facilitated an extensive network of money laundering transactions exceeding $1 billion.
Additionally, it claimed that Tornado Cash enabled the laundering of substantial amounts of money on behalf of the Lazarus Group. This is a North Korean cybercrime organization already under international sanctions.
The U.S. government had taken Roman Storm into custody on Wednesday as part of the development.
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