Hackers Launder Millions Through Tornado Cash Amid US Trial Against Founder Roman Storm
Hackers who stole $50 million from “next-gen stablecoin neobank” Infini earlier this year are actively using Tornado Cash to launder millions, even as the US trial against the crypto mixer and its founder, Roman Storm, continues to unfold.
Millions Laundered Through Tornado Cash
Roughly $10 million worth of ether (ETH) stolen from Infini was sent to Tornado Cash today, while over 1,700 ETH was swapped for roughly 5.9 million DAI. This highlights the ongoing trend of cybercriminals using privacy-focused crypto mixers to cleanse their ill-gotten gains.
One hacker involved in a separate $12 million exploit even attempted to donate some of the stolen funds to Storm’s legal defense, a gesture that was promptly rejected.
US Trial Enters Fourth Day
The trial against Roman Storm has entered its fourth day, with US prosecutors pursuing charges of conspiracy to commit money laundering and conspiracy to violate economic sanctions. Testimony from witnesses who have fallen victim to hacks and thefts, with their crypto subsequently passing through Tornado Cash, has been a focal point of the proceedings.
During the latest court session, an FBI forensics accountant was questioned about legal expenses, while an FBI special agent detailed a raid on Storm’s residence. Notably, a neon Tornado Cash sign was activated in court, underscoring the significance of the crypto mixer in the case.
Defense Challenges Evidence
The defense has been proactive in challenging the prosecution’s evidence, with references to a hard drive found at Storm’s property allegedly containing references to “cleaning” Ethereum and a picture of a washing machine, both suggestive of money laundering activities. Additionally, a Telegram message, which the defense argued should be disregarded as evidence, was scrutinized.
Financial Privacy at the Forefront
Storm’s opening statements emphasized the importance of financial privacy, painting a picture of the risks associated with having every financial transaction publicly visible. However, prosecutors have sought to restrict discussions on financial privacy and its potential links to criminal activities, citing concerns of jury nullification.
As the trial unfolds, the intricate web of cybercrime, money laundering, and privacy in the crypto world continues to be dissected in court.