Prosecutors Tie Roman Storm to North Korea in Tornado Case

Key Takeaways

• US prosecutors allege Roman Storm was involved in North Korean hackers’ use of Tornado Cash for money laundering
• Defense team asserts Storm was “not involved at all” in hackers’ use of the service
• The case is considered potentially impactful for the cryptocurrency and blockchain industry
• Lazarus Group allegedly stole $600 million in the 2022 Ronin Bridge attack
  

Trial Opens with Serious Allegations

The jury selection process for the criminal trial of Roman Storm, co-founder and developer of Tornado Cash, concluded on Tuesday. Prosecutors and defense attorneys presented their opening statements in a case that could have major implications for the cryptocurrency and blockchain industry.

At the US District Court for the Southern District of New York, prosecutors focused primarily on linking Storm to North Korean hackers who allegedly used Tornado Cash to launder funds and violate US sanctions. The Lazarus Group is accused of orchestrating the 2022 Ronin Bridge cyberattack, which resulted in the theft of approximately $600 million in cryptocurrency.

“The defendant exploited a giant washing machine to launder dirty money,” Assistant US Attorney Kevin Mosley stated. He continued: “Mr. Storm had choices. Knowing he was laundering money for criminals, he still chose to commit crimes. He continued to commit crimes.”

Crypto Community Attention

This criminal trial has attracted attention from many key figures in the cryptocurrency and blockchain industry. This may stem from concerns about the impact of any verdict on developers seeking to write code and create new products in this field.

While Storm appeared in US federal court, his indicted colleague Roman Semenov remains at large.

Defense Lawyers Present Counter-Arguments

Storm’s legal team argued in their opening statement that Tornado Cash is “a privacy protocol provided free to everyone” and that developers should not be held criminally liable if others use it for illegal money laundering. US prosecutors objected twice during the opening statement when there were hypothetical mentions about user physical safety.

“Roman was not involved at all in the cyberattack,” Storm’s lawyer Keri Axel stated. “The government’s case is entirely based on what Roman should have done with these pools. But he didn’t do it.”

Axel continued to explain: “The world is full of products that have legitimate uses but are abused. Signal, or even a hammer can be used to break in and steal. The government cannot make a criminal deal for criminal purposes.”

Trial Outlook

The trial is ongoing with the government calling its first witnesses. According to Storm, the trial could last approximately one month.

This case is considered one of the most important trials in the cryptocurrency field, potentially setting legal precedents that could influence how blockchain services operate and the responsibilities of developers in the future.