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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Roman Storm, co-founder of the controversial cryptocurrency mixer Tornado Cash, now awaits a jury verdict following the conclusion of closing arguments in a high-profile case at the Southern District of New York. The outcome of this trial could set a crucial precedent for developers of decentralized software platforms and their liability in criminal misuse of code.
Storm has been charged with conspiring to launder money, violating U.S. sanctions, and operating an unlicensed money-transmitting business. If convicted on all counts, he could face up to 40 years in federal prison.
The judge overseeing the case has issued final instructions to the jury, which is now tasked with deliberating on the fate of the crypto developer.
Prosecutors Accuse Storm of Enabling Criminal Activity
During the prosecution’s closing argument, Assistant U.S. Attorney Ben Gianforti, a specialist in crypto-related crimes, strongly asserted that Storm was complicit in “hiding dirty money.” He accused Storm of running an illegal transmitting business and facilitating transactions that violated U.S. sanctions against North Korea and its state-sponsored hacking group, Lazarus Group.
Gianforti emphasized the use of Tornado Cash following several major hacks, including the KuCoin and Ronin Network breaches. According to the prosecution, Tornado Cash was used to funnel $350 million from a sanctioned wallet controlled by the Lazarus Group after the U.S. Treasury imposed sanctions.
“This is a simple story,” Gianforti told the jury, as reported by Inner City Press. “Tornado Cash was a fancy online money launderer. The business was a haven for criminals. I urge you to use your common sense. Roman Storm is guilty. Thank you.”
Defense Argues Lack of Criminal Intent
In contrast, David Patton, a member of Storm’s defense team, argued that the government had failed to prove intent, a key legal threshold for criminal conviction. Patton likened Tornado Cash to neutral technologies used by both criminals and law-abiding citizens, such as encryption tools or web browsers.
“It is not enough to know that criminals use the product. You have to intentionally help criminals,” Patton told the jury. “Roman’s intent was entirely the opposite. From the U.S. closing, you’d think knowledge is all that’s needed.”
Patton also pushed back on the narrative that Storm was indifferent to criminal use, asserting that the team behind Tornado Cash never intended to support hackers or North Korean actors. “This is not a civil negligence case,” he said. “There has to be willful intent, for good reasons.”
A Trial with Far-Reaching Implications
The verdict in Storm’s case is expected to have a significant impact on the crypto industry, particularly among developers of decentralized applications and protocols. Legal observers note that the case raises broader issues, including code as speech, developer liability, and the limits of privacy in decentralized finance.
With deliberations underway, all eyes in the blockchain world are now on the Southern District of New York, where the jury must now decide whether Storm acted with criminal intent or whether he simply created a tool that was misused by others.
The post appeared first on CryptosNewss.com
$TORN
#TornadoCash.

$33M ETH moved to Tornado Cash has reignited concerns around illicit financial flows in the crypto ecosystem after blockchain monitoring firm Pie Shield flagged a large Ethereum transfer linked to a suspected hacker known as John (Lick).
According to Pie Shield monitoring reports, 11,037 ETH, valued at approximately $33 million, was deposited into Tornado Cash. The funds are believed to be connected to a 2024 theft involving U.S. government assets, raising fresh alarms across the industry.
While Ethereum transactions are transparent by design, mixers like Tornado Cash complicate tracking efforts, once again placing privacy tools at the center of a regulatory and security debate.
Why the $33M ETH Tornado Cash Transfer Matters
The scale and timing of the transfer stand out. Moving such a large amount through a crypto mixer suggests a deliberate attempt to obscure fund origins, a pattern frequently associated with high-profile hacks and state-level investigations.
Security analysts warn that lower transaction costs on Ethereum have made address obfuscation strategies more economically viable. With reduced fees, malicious actors can now execute complex laundering patterns at a fraction of the previous cost.
This development reinforces calls for stronger on-chain monitoring, especially as mixers continue to operate at the edge of regulatory frameworks.
Tornado Cash and the Rising Risk of Sanctions Pressure
The Tornado Cash protocol has faced scrutiny before, and incidents like this could intensify pressure on regulators to revisit enforcement strategies against crypto privacy tools.
Industry observers note that repeated high-value cases risk accelerating sanctions, compliance mandates, or outright restrictions on mixer-related infrastructure. While privacy advocates argue these tools are neutral, regulators increasingly focus on their misuse rather than their intent.
Analysts suggest that future policy responses may target not only mixers themselves, but also wallet providers, exchanges, and bridges interacting with them.
Ethereum Market Context Amid Security Scrutiny
Despite the controversy, Ethereum’s market position remains resilient.
As of January 28, 2026, Ethereum (ETH) was priced at $3,005.07, posting a 24-hour gain of 2.33%, according to CoinMarketCap. With a circulating supply of 120,694,435.10 ETH, Ethereum’s market capitalization stands at approximately $362.70 billion.
This highlights a key tension in the crypto market, strong asset fundamentals coexisting with persistent security and compliance challenges.
What Comes Next for Crypto Compliance
Researchers at Coincu noted that incidents like the $33M ETH moved to Tornado Cash could accelerate tighter compliance frameworks across the industry. Exchanges may face stricter transaction monitoring requirements, while users could see increased friction when interacting with privacy-focused protocols.
Rather than slowing adoption, analysts believe this phase could push crypto toward a more mature structure, where transparency, security, and regulation coexist with innovation.
The long-term outcome will likely shape how Ethereum and other major blockchains balance privacy with accountability.
The post appeared first on CryptosNewss.com
#TornadoCash. #Ethereum $ETH

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.

Mixers Not Just for Criminals
In a marked departure from its previous position, the U.S. Treasury Department has acknowledged that cryptocurrency #Mixers —the tools that blend digital asset transactions to obscure their origins—may serve legitimate privacy purposes, not just illicit ones. This recognition comes in a 2025 report to Congress, where the Treasury emphasized that mixers can help shield personal finances, business deals, and even charitable donations from public scrutniy on blockchains.
The report points out that as digital asset payments become more common, individuals may wish to keep their consumer spending habits private. The Treasury’s new language contrasts sharply with its 2022 action against #TornadoCash. , an $ETH #Ethereum -based mixing service accused of facilitating billions of dollars in laundering tied to North Korea’s Lazarus hacking group. That year, the Office of Foreign Assets Control (OFAC) blacklisted Tornado Cash, barring Americans from using it and sending shockwaves through the crypto community.

OFAC’s 2022 sanctions on Tornado Cash marked the first time a U.S. government agency blacklisted an open-source smart contract.
Policy Pivot: Privacy Gains New Ground
By March 2025, the policy landscape had shifted. The Treasury’s report explicitly states that privacy tools are not inherently illegal and can coexist with compliance measures when designed with safeguards like record-keeping. The Department of Justice also indicated in August it would stop aggressively pursuing charges against developers building privacy-focused crypto tools—a significant change for open-source software creators.
However, the same report warns that non-custodial and decentralized mixers remain popular among cybercriminals for moving illicit funds. Since May 2020, over $1.6 billion in deposits from mixing services flowed into crypto bridges, underscoring ongoing risks and the need for robust anti-money laundering (AML) controls.
OFAC Blacklist Reversed After Legal Push
The legal status of privacy tools reached a turning point when Tornado Cash was removed from #OFAC ’s blacklist in 2025 following court challenges. An appellate court questioned whether the Treasury had authority to sanction open-source smart contracts rather than just individuals or entities. Although Tornado Cash co-founder Roman Storm was released on bail after facing prosecution for knowingly aiding cybercriminals, legal uncertainty remains for developers in this space.
On paper, privacy tools were banned; in practice, legal challenges forced a reassessment.
Why It Matters: Practical Impact on Crypto Users
For everyday users and businesses transacting in digital assets, the Treasury’s recognition of lawful uses for mixers could have concrete effects. In 2025, lawmakers debated bills like the Digital Asset Market Clarity Act (CLARITY bill), which drew criticism for potentially requiring decentralized finance (DeFi) platforms to collect user identification. Alexander Grieve of Paradigm argued that such measures lack sufficient protections for open-source developers—a group already navigating shifting regulatory sands.
Privacy-focused tokens have seen wild price swings amid this regulatory uncertainty. Zcash surged nearly 2,000% between August and September 2025 before crashing by over 65% after its core team exited. Monero hit an all-time high of almost $800 in January 2025 but later dropped below $300 as market sentiment soured and policy debates intensified.
Meanwhile, capital is flowing into projects like Railgun, Nocturne, Zama, Aleo, and Nillion—all offering new approaches to transactional privacy using zero-knowledge technology.
Compliance and Privacy: A Balancing Act
The Treasury now suggests custodial mixers—those run by companies rather than code—could provide identifying information to help track flows if needed. This opens the door for privacy tools to operate within existing AML frameworks without sacrificing user confidentiality entirely. At the same time, calls for a federal ‘hold law’—allowing authorities to freeze suspicious crypto—highlight ongoing concerns about crime and sanctions evasion.
As reported by coindesk.com, the Treasury's latest statements reflect an evolving view: technology itself is not the enemy; rather, it’s how these tools are used and regulated that matters most.
With central bank digital currencies (CBDCs) looming—Ray Dalio recently warned they could become “very effective controlling mechanisms” for governments—the debate over financial privacy versus compliance is set to intensify well beyond 2025.
Key developments still ahead
If the Digital Asset Market Clarity Act of 2025 (CLARITY bill) is passed with its current language requiring DeFi platforms to collect user identification, DeFi leaders warn it would immediately impose new compliance burdens and raise concerns for open-source software developers, though the final scope remains unclear.