Tornado Cash Founder Denies $1B Laundering Charges Linking to Lazarus

Roman Storm, the founder of Tornado Cash, has pleaded not guilty to several charges.

The US government alleges that Tornado Cash was used to launder about $1 billion for the North Korean Lazarus Group.

A group of plaintiffs is suing the US Treasury in 2023, alleging that the sanctions violate the First Amendment.

Tornado Cash’s defence is that it is “merely a tool” and is not responsible for how it is used.

The Office of Foreign Assets Control (OFAC) initially sanctioned Tornado Cash in August 2022 and stopped all customer operations ever since.

An organization called Coin Center in Washington, sued the US Treasury in October 2022, alleging that Tornado Cash is “essential” for preserving their right to privacy.

The plaintiffs in the lawsuit, are claiming that the United States’ sanctions on Tornado Cash “exceed the department’s authority”, violated the First Amendment and infringed upon the right to free speech.