Cryptocurrency Developer Arrested on Money Laundering Charges Released on Bail Following DOJ Announcement

Cryptocurrency Developer Arrested on Money Laundering Charges Released on Bail Following DOJ Announcement

Crypto News – Roman Storm, the co-founder of the cryptocurrency mixing service Tornado Cash, has been granted release on bail as of August 24. This development follows his arrest on August 23 by the United States Department of Justice (DOJ) on charges related to money laundering and other alleged violations.

Roman Storm’s legal representative, Brian Klein, confirmed his release on bail and expressed his disappointment with the prosecution’s approach, which he views as unjustly targeting a software developer for their role in creating software. Klein shared his concerns, stating, “Their innovative legal interpretation could have far-reaching consequences for all software developers.”

The announcement of Storm’s release came swiftly after the DOJ’s disclosure of charges against him and fellow Tornado Cash co-founder Roman Semenov on August 23. The charges brought by U.S. authorities center around the operation of Tornado Cash services, with allegations of laundering more than $1 billion in illicit funds. Additional charges involve conspiracies to violate sanctions and run an unlicensed money transmitting business.

Brian Klein, representing Storm, did not immediately provide a response to inquiries from Cointelegraph regarding the matter.

This development comes approximately a year after the U.S. Treasury Department added Tornado Cash-related addresses to the Office of Foreign Asset Control (OFAC)’s list of Specially Designated Nationals. In a related incident, authorities in the Netherlands had detained another Tornado Cash developer, Alexey Pertsev, who was released from custody in April 2023 after nearly nine months of incarceration.

It’s worth noting that both Pertsev and Storm are not the sole developers facing legal actions in connection with Tornado Cash. Co-founder Roman Semenov also found his name added to OFAC’s list of Specially Designated Nationals and Blocked Persons on August 23. However, as of now, Semenov has not been subjected to arrest.