Founder Of Mixer Crypto Tornado Cash Charged With Money Laundering

Tornado Cash founder was charged with money laundering. (Photo; Doc. Coincu)

JAKARTA - Two founders of the Tornado Cash crypto platform have been charged with serious charges, including money laundering and violations of US federal sanctions. According to prosecutor Roman Semenov, co-founder, has also been added to the list of citizens sanctioned by the Office of Foreign Assets Supervision (OFAC).

For additional information, the US Treasury Department has Office of Foreign Assets Control (OFAC) responsible for imposing sanctions on individuals or entities deemed to violate international law or threats to US national security.

Meanwhile, Roman Storm, Semenov's colleague, is said to be responsible for money laundering worth more than US$1 billion (Rp15.3 trillion) through the Tornado Cash mixing service. Investigations involving various US agencies, including US Prosecutors for the Southern District of New York, US Attorney General total Garland, and the FBI, have revealed their role in tackling these illegal activities.

The mixing of funds through Tornado Cash, which is intended to maintain transaction privacy, has attracted the attention of the US Treasury Department (DOJ). The OFAC's move to impose sanctions on the two founders marks the intensification of the US investigation into the platform.

The legal process involving the Treasury Department has been ongoing. Ethereum email and wallet addresses related to Roman Semenov have also been listed by OFAC.

However, among the founders involved in this platform, only Roman Storm was arrested and appointed as the perpetrator of money laundering. Meanwhile, Roman Semenov is unknown.

Not only that, OFAC also published a list of individuals and companies targeted for sanctions, blocked related assets and banned US citizens from conducting transactions with them.

The Tornado Cash founder faces three serious charges in the US, including conspiracy to illegally retaliate money laundering, sanctions violations, and money forwarding business operations. The legal handling also refers to Tornado Cash's alleged involvement with a hacking group linked to North Korea.

The case emerged after a judge backed the Treasury Department over Tornado Cash's lawsuit, placing the platform under OFAC's jurisdiction. However, this result retains the plaintiff's ability to file an appeal.

This decision has a significant impact on how US authorities address money laundering activities in crypto spaces, suggesting that entities like Tornado Cash can be sanctioned, although decentralized in nature.