Know Why FBI Arrests Tornado Cash's Co-Founder in North Korea


US Department of Treasury imposed sanctions on a co-founder of Tornado Cash on August 23 

Tornado Cash's co-founder is accused of alleging involvement in money laundering in North Korea. 

Tornado Cash, a crypto mixer, faces regulatory crackdown for violating US sanctions and facilitating obscured transactions. 

Roman Semenov, a Tornado Cash co-founder, sanctioned by US Treasury's Office of Foreign Assets Control (OFAC) for supporting Tornado Cash and Lazarus Group. 

Lazarus Group, a state-backed hacking group linked to North Korea, allegedly received material support from Roman Semenov and Tornado Cash. 

Another co-founder, Roman Storm, arrested by FBI and IRS for conspiracy to operate an unlicensed money-transmitting business. 

Third co-founder, Alexey Pertsev, was arrested in the Netherlands in August 2022. Tornado Cash has three co-founders in total. 

Tornado Cash offers a crypto mixing service that enhances transaction privacy by blending transaction sources before sending to recipients.