Tornado Cash Founder Requests Additional $1.5 Million in Legal Support from Supporters

Source
Uk Jin

Summary

  • Roman Storm, co-founder of Tornado Cash, has reportedly requested an additional $1.5 million to cover legal expenses.
  • This trial involves serious allegations such as conspiracy to launder funds and sanctions violations, highlighting the ongoing regulatory risks in the crypto market.
  • Although Tornado Cash was officially removed from the U.S. OFAC sanctions list, the prosecution by the DOJ and the defense’s arguments over open-source technology remain key variables for investors.
Photo=Roman Storm X Screenshot
Photo=Roman Storm X Screenshot

Roman Storm, co-founder of the cryptocurrency mixing platform Tornado Cash (TORN), has requested an additional $1.5 million (approximately ₩2 billion) in support to cover trial costs.

According to crypto-focused media outlet Cointelegraph on the 28th (KST), Storm announced via his X (formerly Twitter) account on the 26th (local time), “Legal expenses are rising rapidly” and “We need about $1.5 million again.” He also appealed, “Our legal team is working around the clock, and now costs are being incurred every hour.”

Storm has been charged as Tornado Cash’s co-developer for conspiracy to launder funds, violating sanctions, and operating an unlicensed money transmitting business. The trial began on July 14th in Manhattan, New York.

Previously, the crypto community donated about $3.9 million to support Storm’s trial. At that time, the Ethereum Foundation also separately donated $750,000 in support.

Meanwhile, in August 2022, Tornado Cash was subject to sanctions by the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) after it became known that it was used by illicit actors such as North Korea's Lazarus Group. However, the sanctions were nullified in a civil lawsuit where users contested the measures, and Tornado Cash was officially removed from the OFAC blacklist in March this year.

Currently, the U.S. Department of Justice (DOJ) alleges Storm conspired to launder funds and violate sanctions using Tornado Cash. On the other hand, Storm’s side argues that the protocol is open-source technology available to anyone, is not a for-profit company, and that he could not control the transactions.

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Uk Jin

wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
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