Roman Storm Allegedly Moves $8M Through Binance, Prosecutors Cite Offshore Activity Amid Defense's Immutability Claims

Federal prosecutors have alleged that Roman Storm, founder of the cryptocurrency privacy tool Tornado Cash, moved $8 million through Binance, distributing $2.6 million to each co-founder, while coordinating efforts to obscure financial trails via offshore entities and real estate purchases. Chat logs presented in court reveal explicit plans to establish offshore accounts and acquire property using proceeds from the platform, underscoring a strategic attempt to mask the origin of funds. IRS-CI Special Agent Stephan George testified that Storm retained control over the Binance account linked to these transactions, reinforcing the prosecution’s claims of direct involvement in managing crypto assets.

Key evidence includes messages between Storm and co-founders Roman Semenov and Alexey Pertsev, such as “I overloaded 8 million yesterday” and “I sent you guys 2.6 million each,” which indicate coordinated distribution of funds. Agent George also traced $533,000 in USDT from a Binance account allegedly controlled by Storm, dispersed across multiple wallets on August 9, 2022. These findings challenge the defense’s argument that Tornado Cash’s smart contracts, immutable since May 2020, absolve Storm of responsibility. The defense contends the platform’s decentralized nature limits his control, noting transactions occur on the Ethereum blockchain without direct user interface manipulation.

Technical analysis complicates the case: Philip Werlau of AnChain.AI highlighted that 96.2% of Tornado Cash users accessed the platform via its web interface, a trend that shifted post-US sanctions as groups like Lazarus Group adopted command-line tools to evade detection. The defense has leveraged this data to emphasize the platform’s technical autonomy, while prosecutors argue Storm’s actions—such as instructing a colleague to “buy real estate” with crypto—demonstrate intent to circumvent regulations. Semenov’s message, “I will send some TORN later, to avoid getting busted,” further illustrates awareness of legal risks.

Legal proceedings are nearing a critical phase, with the prosecution expected to conclude its case soon. Chainalysis’ expert testimony, pending, may clarify methodologies for tracing transactions. Storm’s defense plans to stress the platform’s decentralized structure, arguing that post-deployment immutability limits his control. Judge Nicholas Failla has warned the jury to critically evaluate evidence, emphasizing factual rigor. The trial, drawing significant attention, could set precedents for holding decentralized protocol developers accountable under US law.

The case underscores broader challenges in regulating decentralized finance, where technical immutability clashes with legal expectations of accountability. Prosecutors’ focus on Storm’s active role in asset allocation contrasts with the defense’s emphasis on protocol autonomy. As the trial progresses, its outcome may influence how courts interpret control and responsibility in blockchain-based systems, with implications for future cryptocurrency governance.

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Source: [1] [Tornado Cash Founder Roman Storm Allegedly Moved Millions Through Binance, Defense Cites Immutability] [https://en.coinotag.com/tornado-cash-founder-roman-storm-allegedly-moved-millions-through-binance-defense-cites-immutability/]