Storm's lawyers said the US prosecutors' "novel legal theories have dangerous implications for all software developers".
Roman Storm, one of the co-founders of cryptocurrency mixer Tornado Cash, is no longer in custody and is currently out on bail.
U.S. authorities arrested the individual earlier this week, accusing his entity of facilitating money laundering and participating in the North Korean hacking group Lazarus Group.
'Disappointed by the arrest'
Roman Storm’s lawyer, Brian Klein, revealed that his client has been released on bail (the amount of bail was not disclosed). He expressed disappointment at being detained, saying that Storm helped the advancement of software. In addition, he believes that the “novel legal theory” of the US prosecutors may affect the operations of all software developers.
Happy to report that my client Roman Storm is out on bail, though I remain deeply disappointed that prosecutors charged him for helping to develop software. Their novel legal theories have dangerous implications for all software developers. — Brian Klein (@brianeklein) August 24, 2023
U.S. law enforcement officials arrested Storm on August 23, charging him and his accomplice Roman Semenov, another Tornado Cash co-founder, with conspiracy to launder money, conspiracy to operate an unauthorized money transmitting business, and conspiracy to violate U.S. sanctions.
Prosecutors also said the cryptocurrency mixer failed to implement know-your-customer (KYC) or anti-money laundering programs despite numerous complaints from victims of the hack.
Semenov remains at large, and agents with the FBI’s New York field office are trying to locate him. The U.S. Office of Foreign Assets Control (OFAC) recently added him to a specially designed sanctions list.
James Smith, assistant director in charge of the FBI's New York field office, said, "We are working with law enforcement both within and outside of our agency to try to locate and arrest this individual...We will pursue any avenue, whatever arrest we need to make, whether it's domestic or international."
Alexey Pertsev, Tornado Cash’s third co-founder, has also run into legal problems. He was detained in Amsterdam last summer shortly after OFAC imposed sanctions on cryptocurrency mixers suspected of providing services to the North Korean hacking group Lazarus.
The developer has spent nine months in jail since authorities denied him bail. He is currently awaiting trial that will determine whether his entities have links to Pyongyang-based organizations.
What is the exact number?
The main allegation against Tornado Cash is that it facilitated more than $1 billion in criminal prosecutions over the years, including hundreds of millions of dollars for Lazarus.
Acting Assistant Attorney General Nicole Argentieri argued that such cryptocurrency mixers have become “the method of choice for criminals to hide their ill-gotten gains.”
She added, “The defendants used Tornado Cash as a safe haven for criminals to obfuscate the trail of funds associated with their criminal activities, such as computer hacking and wire fraud.”
