US Accuses Crypto Platform Founders of Laundering Millions for North Koreans

The Justice Department of USA on Wednesday accused two founders of a Russian crypto platform of laundering more than $1 billion, some of that money directed to the North Korean hacking group Lazarus Group, sanctioned by the US government.

Roman Storm, a 34-year-old US citizen, and Roman Semenov, a 35-year-old Russian, founders of Tornado Cash, were charged with conspiring to launder money, violating sanctions and operating a money transfer business without a license, the Southern District Attorney’s Office revealed. from New York.

Tornado Cash is what is known as a “mixer of cryptocurrencies”a platform that increases the anonymity of certain cryptocurrency transactions, which can be useful for people living under repressive regimes but also opens the door to criminal activities, indicates the specialized website Ledger.

The US authorities argue that the two defendants offered “a technically sophisticated privacy service”but “they knew that they were, in fact, helping hackers and con artists hide the fruits of their crimes”so they did not comply with the regulations.

Specifically, the Justice indicates that in April and May 2022, Tornado Cash was used by the cybercrime group Lazarus Group to “launder hundreds of millions of dollars in hacking proceeds.”

Storm and Semenov “they received complaints and requests for help from victims of hacking and other cybercrimes” butor “refused to implement any controls and continued to operate the Tornado Cash service and facilitate money laundering transactions,” points to the note.

Storm, who was arrested yesterday in the US, and Semenov, who is under search, each face a maximum of 45 years in prison if found guilty of the crimes they are charged with.

A third Tornado founder, Alexey Pertsev, who is not named in the case, is facing trial in Amsterdam, the Netherlands, for his involvement with the platform.

Source: EFE