TornadoCash.

After 18 months in jail, Tornado Cash developer Alexey Pertsev is being released under house arrest on Feb 7 with an electronic bracelet, per a Dutch court ruling.

"It is not real freedom, but it is better than prison," Pertsev posted on X.

He plans to appeal his conviction and continue fighting for justice. ⚖️

In 2024, he was sentenced to 5 years and 4 months for allegedly laundering $1.2B through the privacy mixer.

This is the first time a dev was convicted for how others used their code—sparking huge debate in crypto circles. 🧑‍💻

Meanwhile, TORN token pumped 40% on the news. 🚀
#AlexeyPertsev #TornadoCash.

In the fast-moving world of cryptocurrencies, Roman Storm, co-founder of Tornado Cash, has become a focal point in the debate over technological innovation, regulation, and financial privacy. Storm is facing charges of money laundering and sanctions violations, part of a broader U.S. government crackdown on privacy-focused crypto tools.
What does this case mean for the future of blockchain innovation? And how might it be affected by Donald Trump's policies, given his stance as a pro-crypto president?
Storm: "This Is a Nightmare No Developer Should Experience"
In an exclusive interview, Storm spoke candidly about his legal battle, which has turned his life upside down:
“The indictment has put me in total limbo. I can’t plan my future—personally or professionally. Every day, I deal with this case, and it's getting harder to support my family,” Storm said.
Storm denies any wrongdoing, insisting he is not a criminal but simply a coder who built neutral technology. He argues that Tornado Cash is merely a privacy tool, which, like many technologies before it, can be misused.
“If we criminalize developers for writing open-source code, where does it stop? Do we start arresting people for creating web browsers because criminals use them for illegal activities?”
His case could have a chilling effect on crypto developers, particularly those working on decentralized applications (dApps), DeFi protocols, and privacy tools. The crypto industry has long maintained that code is a form of free speech, protected under the First Amendment.
Tornado Cash: Privacy Protector or Criminal Tool?
In 2022, the U.S. Treasury Department sanctioned Tornado Cash, citing its use by North Korean hacker group Lazarus to launder stolen funds. However, many argue the platform was designed primarily to protect the privacy of ordinary crypto users, an increasingly rare advantage in a world of mass surveillance.
In 2023, the Federal Reserve Bank of St. Louis published an analysis of Tornado Cash, highlighting a complex dilemma:
“Public blockchains are extremely transparent, creating a legitimate need for privacy tools. At the same time, there is strong evidence that crypto mixers are frequently used for money laundering.”
Trump's Pro-Crypto Stance: A Lifeline for Developers?
During his presidential campaign, Donald Trump strongly supported Bitcoin, promising to reverse anti-crypto regulations. In his first week in office, he signed an executive order on digital assets, appointing David Sacks as his "crypto czar" to oversee a review of crypto policies.
However, Storm’s case raises a critical question: Will Trump's crypto policies extend to protecting developers?
It remains unclear how Trump will address financial privacy issues. While cryptocurrencies and stablecoins may benefit from lighter regulations, privacy-focused tools like Tornado Cash might not receive the same leniency.
Storm’s prosecution began under the Biden administration, but will Trump step in to change the landscape?
Upcoming Trial: A Defining Moment for Crypto Regulations
Storm is set to stand trial in April 2025, a pivotal moment for the future of crypto regulation. His case has gained widespread support from the crypto community:
🔹 The Electronic Frontier Foundation (EFF) filed an amicus brief defending Storm, arguing that his prosecution threatens open-source software developers' rights.
🔹 Paradigm donated $1.25 million to Storm’s legal defense, highlighting growing industry concerns.
Storm’s Legal Team: Fighting a Landmark Case
Storm’s legal defense is led by Brian Klein, a top attorney specializing in crypto and financial regulations. Klein previously represented:
✅ Erik Voorhees (ShapeShift founder) – Negotiated a settlement with the SEC.
✅ Arthur Hayes (BitMEX founder) – Helped reduce his sentence.
✅ Virgil Griffith (Ethereum developer) – Defended him against sanctions violations related to North Korea.
Griffith was ultimately sentenced to five years in prison, but Storm’s case is different—he merely built a protocol that was later misused. This raises fundamental questions about developer liability and intent.
The Future of Crypto: Developer Exodus or Legal Victory?
⚠️ If Storm is convicted, some fear that developers will flee the U.S., pushing crypto innovation overseas.
⚡ If he is acquitted, it would set a crucial precedent affirming that writing open-source code is not a crime.
For now, Storm remains trapped in legal uncertainty, and his case will serve as a litmus test for the future of crypto freedom.
“I just want to build. That’s all I’ve ever done. If we criminalize developers, we’re not just killing crypto—we’re killing the future,” Storm concluded. 🚀

#TornadoCash. , #CryptoSecurity , #MoneyLaundering , #CryptoNewss , #blockchain

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Preface
In November 2024, the Fifth Circuit Court ruled that the sanctions imposed by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) on the mixing service Tornado Cash violated the International Emergency Economic Powers Act (IEEPA). The Fifth Circuit Court held that the smart contract of Tornado Cash is decentralized, self-operating, and uncontrollable code that cannot be owned, is not property, and should not be included in the OFAC sanctions list, and that OFAC's sanctions exceeded its statutory authority.
Although the Fifth Circuit Court's ruling on the Tornado Cash case is seen as a victory for the crypto industry, the undeniable fact is that North Korean hackers and coin theft criminal organizations are indeed using Tornado Cash for money laundering to evade regulatory enforcement sanctions. So, can we ensure on-chain privacy for crypto users under the premise of legality and compliance in the crypto world? Today, I will share how the mixing protocol Railgun complies with regulations to protect user on-chain privacy.

The new year brings a fresh start for many, but for some individuals who were once at the center of the cryptocurrency industry, this is a time to face the consequences of their wrongdoing. Below is a list of some prominent figures in the cryptocurrency space who are serving prison sentences:

1. Sam Bankman-Fried (SBF)
Charge: Fraud, conspiracy, and money laundering.
Sentence: 25 years in prison.
Incarceration location: Metropolitan Detention Center, Brooklyn, New York.

WASHINGTON – The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on the virtual currency mixer #TornadoCash. , which has facilitated the laundering of over $7 billion in virtual currency since its inception in 2019. This amount includes more than $455 million that was stolen by the Lazarus Group, a state-sponsored hacking organization from the Democratic People’s Republic of Korea (DPRK) that was sanctioned by the U.S. in 2019, marking the largest known virtual currency theft to date. Tornado Cash has also been implicated in laundering over $96 million linked to the June 24, 2022 Harmony Bridge Heist, as well as at least $7.8 million from the August 2, 2022 Nomad Heist. This action is being taken in accordance with Executive Order (E.O.) 13694, as amended, and follows OFAC’s designation of the virtual currency mixer Blender.io on May 6, 2022.
“Today, the Treasury is sanctioning Tornado Cash, a virtual currency mixer that facilitates the laundering of proceeds from cybercrimes, including those affecting victims in the United States,” stated Brian E. Nelson, Under Secretary of the Treasury for Terrorism and Financial Intelligence. “Despite public claims to the contrary, Tornado Cash has consistently failed to implement effective controls to prevent it from laundering funds for malicious cyber actors regularly and without adequate measures to mitigate its risks. The Treasury will persist in its vigorous efforts against mixers that launder virtual currency for criminals and those who support them.”
The Treasury has taken steps to unveil various elements of the virtual currency ecosystem, such as Tornado Cash and Blender.io, which are utilized by cybercriminals to conceal the proceeds from illegal cyber activities and other offenses. Although the majority of virtual currency transactions are legitimate, they can also facilitate unlawful activities, including evasion of sanctions through mixers, peer-to-peer exchanges, darknet markets, and exchanges. This encompasses the support of heists, ransomware attacks, fraud, and other forms of cybercrime.

The Treasury remains committed to employing its authorities against harmful cyber actors in collaboration with other U.S. departments and agencies, as well as international partners, to identify, disrupt, and hold accountable those who perpetrate and enable criminal profits from cybercrime and other illegal activities. For instance, in 2020, the Financial Crimes Enforcement Network (FinCEN) of the Treasury imposed a civil monetary penalty of $60 million on the owner and operator of a virtual currency mixer for breaching the Bank Secrecy Act (BSA) and its associated regulations.
MIXER: TORNADO CASH
Tornado Cash (Tornado) is a cryptocurrency mixing service that functions on the Ethereum blockchain, enabling anonymous transactions by concealing their origins, destinations, and involved parties without any effort to trace their source. Tornado aggregates various transactions, blending them before sending them to their respective recipients. Although its primary aim is to enhance user privacy, mixers such as Tornado are frequently exploited by individuals engaged in illegal activities to launder money, particularly funds acquired through major thefts.
Tornado has been designated under E.O. 13694, as amended, for its significant role in assisting, sponsoring, or providing financial, material, or technological support for cyber-enabled activities that originate from or are directed by individuals located, in whole or in substantial part, outside the United States. These activities are likely to pose a considerable threat to the national security, foreign policy, or economic health and financial stability of the United States, with the intent or effect of causing substantial misappropriation of funds, economic resources, trade secrets, personal identifiers, or financial information for commercial or competitive advantage or personal financial gain.
ILLICIT FINANCE RISKS
Virtual currency mixers that facilitate criminal activities pose a significant threat to national security in the United States. The Treasury Department will persist in its investigations into the utilization of mixers for unlawful purposes and will employ its regulatory powers to address the risks associated with illicit financing within the virtual currency landscape.
There has been a notable increase in the use of anonymity-enhancing technologies, such as mixers, by criminals seeking to obscure the flow or origin of funds. Further details regarding the illicit financing risks linked to mixers and other anonymity-enhancing technologies in the virtual asset sector can be found in the 2022 National Money Laundering Risk Assessment.
Participants in the virtual currency industry have a vital responsibility to adhere to their Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) and sanctions obligations. This compliance is essential to prevent sanctioned individuals and other illicit actors from exploiting virtual currency in ways that could undermine U.S. foreign policy and national security interests. To support this initiative, the industry should adopt a risk-based approach to evaluate the risks associated with various virtual currency services, implement strategies to mitigate these risks, and confront the challenges that anonymizing features may pose to compliance with AML/CFT requirements. As evidenced by recent actions, mixers should generally be regarded as high-risk by virtual currency firms, which should only engage in transactions if they have established adequate controls to prevent the use of mixers for laundering illicit proceeds.
SANCTIONS IMPLICATIONS
Following today's action, all property and interests in property belonging to the aforementioned entity, Tornado Cash, that are located within the United States or are under the possession or control of U.S. persons are hereby blocked and must be reported to OFAC. Furthermore, any entities that are owned, either directly or indirectly, by one or more blocked individuals to the extent of 50 percent or more are also subject to blocking. Transactions conducted by U.S. persons or occurring within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked individuals are strictly prohibited unless authorized by a general or specific license issued by OFAC, or are otherwise exempt. These prohibitions encompass the provision of any contributions or resources, including funds, goods, or services, to or for the benefit of any blocked individual, as well as the receipt of any contributions or resources from such individuals.
The authority and effectiveness of OFAC sanctions stem not only from its capacity to designate and add individuals to the SDN List but also from its readiness to remove individuals from the SDN List in accordance with legal standards. The primary objective of sanctions is not punitive; rather, it aims to foster a constructive change in behavior.
Best time to buy as market is Bearish and take Handsome profit in Solna, Ethereum, Bitcoin, Ordi, BNx.
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📝 𝗟𝗲𝗴𝗮𝗹 𝗮𝗻𝗱 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗨𝗽𝗱𝗮𝘁𝗲𝘀:
• 𝑮𝒆𝒐𝒓𝒈𝒊𝒂 𝑴𝒂𝒏 𝑪𝒉𝒂𝒓𝒈𝒆𝒅 𝒊𝒏 $𝟐𝟑𝟎𝑴 𝑪𝒓𝒚𝒑𝒕𝒐 𝑻𝒉𝒆𝒇𝒕-𝑳𝒊𝒏𝒌𝒆𝒅 𝑲𝒊𝒅𝒏𝒂𝒑𝒑𝒊𝒏𝒈: James Schwab, 22, of Peachtree Corners, Georgia, has been indicted for his purported participation in the Aug. 2024 kidnapping of a Danbury couple. The kidnapping is linked to a $230 million cryptocurrency heist, in which the son of the victims was purportedly involved. Schwab is the seventh defendant to be charged in the case and could face life in prison if convicted.
• 𝑪𝒓𝒚𝒑𝒕𝒐 𝑫𝒆𝒗𝒆𝒍𝒐𝒑𝒆𝒓 𝑭𝒂𝒄𝒆𝒔 𝑻𝒓𝒊𝒂𝒍 𝑶𝒗𝒆𝒓 𝑻𝒐𝒓𝒏𝒂𝒅𝒐 𝑪𝒂𝒔𝒉: Roman Storm, a software developer, will go on trial after being arrested for developing Tornado Cash, a cryptocurrency mixer that hides transaction information. Although intended for privacy, it was used by actors such as North Korea's Lazarus Group to launder more than $1 billion. Storm is charged with money laundering, punishable by up to 45 years.

📊 𝗠𝗮𝗿𝗸𝗲𝘁 𝗠𝗼𝘃𝗲𝗺𝗲𝗻𝘁𝘀:
• 𝑩𝒊𝒕𝒄𝒐𝒊𝒏 𝒂𝒏𝒅 𝑨𝒍𝒕𝒄𝒐𝒊𝒏𝒔 𝑫𝒊𝒔𝒑𝒍𝒂𝒚 𝑭𝒂𝒗𝒐𝒓𝒂𝒃𝒍𝒆 𝑻𝒓𝒆𝒏𝒅𝒔: Bitcoin, XRP, and Solana (SOL) have seen their prices rise along with U.S. equity futures. SOL is at the forefront of the trend, with analysts citing forthcoming tariff measures and general market forces.
⚙️ 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁𝘀:
• 𝑫𝒆𝒖𝒕𝒔𝒄𝒉𝒆 𝑩𝒐𝒆𝒓𝑶𝒇𝒇𝒆𝒓 𝑪𝒓𝒚𝒑𝒕𝒐: Germany's Deutsche Boerse has revealed intentions to offer cryptocurrency custody and settlement solutions for institutional customers beginning next month. The initiative places Deutsche Boerse among the increasing list of institutional financial players venturing into crypto custody.
• 𝑩𝒊𝒏𝒂𝒏𝒄𝒆 𝑺𝒖𝒔𝒑𝒆𝒏𝒅𝒔 𝑬𝒎𝒑𝒍𝒐𝒚𝒆𝒆 𝑶𝒗𝒆𝒓 𝑰𝒏𝒔𝒊𝒅𝒆𝒓 𝑻𝒓𝒂𝒅𝒊𝒏𝒈 𝑨𝒍𝒍𝒆𝒈𝒂𝒕𝒊𝒐𝒏𝒔: Binance suspended an employee after its internal probe into insider trading accusations. The exchange affirmed that it is dedicated to keeping its operations transparent and honest and would act accordingly against any wrongdoing.
⚖️ 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗔𝗰𝘁𝗶𝗼𝗻𝘀:
• 𝑲𝒆𝒏𝒕𝒖𝒄𝒌𝒚 𝑮𝒐𝒗𝒆𝒓𝒏𝒐𝒓 𝑺𝒊𝒈𝒏𝒔 '𝑩𝒊𝒕𝒄𝒐𝒊𝒏 𝑹𝒊𝒈𝒉𝒕𝒔' 𝑩𝒊𝒍𝒍 𝒊𝒏𝒕𝒐 𝑳𝒂𝒘: Kentucky Governor has signed the 'Bitcoin Rights' bill into law, an effort to offer legal clarity and protection for cryptocurrency business entities and users in the state. The bill is one of a series of moves by U.S. states towards defining clear regulatory guidelines around digital assets.