Latest news with #LazarusGroup
Yahoo
2 days ago
- Business
- Yahoo
US jury deadlocks on Tornado Cash founder's money laundering charge
By Luc Cohen NEW YORK (Reuters) -A U.S. jury deadlocked on Wednesday on money laundering and sanctions evasion charges against the founder of Tornado Cash, a firm that makes cryptocurrency transactions harder to track. The jury in Manhattan federal court could not reach a verdict on charges Roman Storm conspired to launder the proceeds of hacks, including by a sanctioned North Korean government-backed group. But the jury found him guilty of the less serious charge of conspiracy to operate an unlicensed money transmitting business. He faces up to five years in prison when he is sentenced by U.S. District Judge Katherine Failla at a later date. The money laundering and sanctions evasion conspiracy charges each carried possible 20-year sentences. Storm was arrested in 2023 on charges that the so-called mixer he founded helped hide more than $1 billion, including hundreds of millions of dollars for Pyongyang-backed hacking group Lazarus Group, which is blacklisted by the U.S. Treasury over its alleged financial support of North Korea. Storm, 36, had pleaded not guilty to all three felony charges he faced. Prosecutors told Failla they would inform her at a later date of whether they intend to re-try Storm on the money laundering and sanctions charges. In a statement after the verdict, Manhattan U.S. Attorney Jay Clayton said, "Criminals who use new technology to commit age old crimes, including hiding dirty money, undermine the public trust." Storm may ask Failla to toss the conviction for unlicensed money transmitting, or appeal the conviction after he is sentenced. "We are grateful the jury did not convict Roman for violating sanctions or laundering money," Brian Klein, a lawyer for Storm, said in a statement after the verdict. Klein said he expected Storm to be vindicated on the unlicensed money transmission count as well, which he said faced "serious legal issues." In his closing argument on July 30 after a two-week trial in Manhattan federal court, defense lawyer David Patton said even though Tornado Cash's privacy tools may have been useful to criminals, Storm's intent was not to help conceal illicit funds. "Roman very much did not want hackers and scammers to use Tornado Cash," Patton said. Prosecutor Benjamin Gianforti said Storm had been informed multiple times between 2020 and 2022 that Tornado Cash was helping criminals hide dirty money, but kept running the business out of greed. "The real money wasn't in protecting privacy for regular folks, it was in providing privacy for big-time crypto criminals," Gianforti said. Tornado Cash had itself been sanctioned by the U.S. Treasury under then-President Joe Biden's Democratic administration over its alleged support of North Korea. The Treasury lifted those sanctions in March, two months into Republican President Donald Trump's administration, saying it had reviewed legal and policy issues raised by the sanctions within "evolving technology and legal environments."
Reuters
3 days ago
- Business
- Reuters
US jury deadlocks on Tornado Cash founder's money laundering charge
NEW YORK, August 6 (Reuters) - A U.S. jury deadlocked on Wednesday on money laundering and sanctions evasion charges against the founder of Tornado Cash, opens new tab, a firm that makes cryptocurrency transactions harder to track. The jury in Manhattan federal court could not reach a verdict on charges Roman Storm conspired to launder the proceeds of hacks, including by a sanctioned North Korean government-backed group. But the jury found him guilty of the less serious charge of conspiracy to operate an unlicensed money transmitting business. He faces up to five years in prison when he is sentenced by U.S. District Judge Katherine Failla at a later date. The money laundering and sanctions evasion conspiracy charges each carried possible 20-year sentences. Storm was arrested in 2023 on charges that the so-called mixer he founded helped hide more than $1 billion, including hundreds of millions of dollars for Pyongyang-backed hacking group Lazarus Group, which is blacklisted by the U.S. Treasury over its alleged financial support of North Korea. Storm, 36, had pleaded not guilty to all three felony charges he faced. In his closing argument on July 30 after a two-week trial in Manhattan federal court, defense lawyer David Patton said even though Tornado Cash's privacy tools may have been useful to criminals, Storm's intent was not to help conceal illicit funds. "There is nothing unlawful about the software that he built," Patton said. "The evidence here shows that Roman very much did not want hackers and scammers to use Tornado Cash." Prosecutor Benjamin Gianforti said Storm had been informed multiple times between 2020 and 2022 that Tornado Cash was helping criminals hide dirty money, but kept running the business out of greed. Gianforti said Tornado Cash's emphasis on user privacy was a "cover story." "The real money wasn't in protecting privacy for regular folks, it was in providing privacy for big time crypto criminals," Gianforti said. "Hackers were his best customers." Tornado Cash had itself been sanctioned by the U.S. Treasury under then-President Joe Biden's Democratic administration over its alleged support of North Korea. The Treasury lifted those sanctions in March, two months into Republican President Donald Trump's administration, saying it had reviewed legal and policy issues raised by the sanctions within "evolving technology and legal environments." Last year, one of Tornado Cash's developers, Alexey Pertsev, was sentenced to five years and four months in prison in the Netherlands for money laundering.
Yahoo
30-07-2025
- Business
- Yahoo
"A Whale of a Problem: Why Self-Custody Might Sink Bitcoin Giants"
For over a decade, the mantra for bitcoin holders has been clear: "not your keys, not your coins." But as bitcoin matures into a globally recognized asset, that mindset is no longer sufficient for whales managing hundreds of millions in BTC. The recent movement of over 80,000 BTC from eight Satoshi-era wallets — the largest such transfer in bitcoin's history – has reignited attention around how legacy holders manage and eventually unwind vast positions. Holding spot bitcoin directly, especially in large quantities, exposes investors to avoidable risk, operational headaches and regulatory friction — not to mention the kind of custody nightmares that can keep even the most seasoned holders up at night. Invest in Gold American Hartford Gold: #1 Precious Metals Dealer in the Nation Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase Thor Metals Group: Best Overall Gold IRA An alternative exists in the form of regulated bitcoin exchange-traded products (ETPs) — a proven, equity-like structure with a strong track record. Physically backed crypto ETPs have been available in Europe for over seven products combine the transparency and safeguards of traditional markets with the innovation of digital assets — offering stronger security frameworks, improved liquidity access, tax and compliance efficiencies and the ability to use them as collateral for loans. For large holders, the case to move into regulated wrappers is becoming too strong to ignore. Liquidity is a major concern. Large holders who want to unwind a position often face significant slippage and counterparty risk on centralized exchanges. Alternatively, they must appoint external firms to manage the process, triggering time delays due to onboarding and KYC and often paying a premium in execution. With an ETP, the administrative hurdles are front-loaded; once onboarded, the investor has access to the ETP's liquidity pool, simplifying and accelerating exit strategies when timing matters. Many whales believe that self-custody maximizes security. In reality, managing large spot positions is incredibly complex. Key management, cold storage logistics, succession planning and internal controls require infrastructure that few individuals — or even crypto-native funds — can maintain securely at scale. Regulated ETPs sidestep this entirely by offering professionally managed custody solutions — combining segregated accounts, insurance coverage and direct oversight from financial regulators. European structures go even further with bankruptcy-remote frameworks and legal title to the underlying BTC. This isn't about giving up ownership, in fact, it is an upgrade to how that ownership is held: securely, transparently and with institutional-grade safeguards to avoid loss and fraud. For example, the Lazarus Group, one of North Korea's most notorious hacking organizations, has been responsible for a significant number of crypto-related breaches, resulting in the theft of $1.5 billion this year alone. Figure 1: Total value of crypto-hacks in USD over the past several years Source: Chainalysis European ETPs allow in-kind transfers which enable investors to move bitcoin directly into and out of the fund without triggering a taxable event. This is especially valuable in jurisdictions like Switzerland and Germany, where long-term holders can optimize capital gains treatment. For whales thinking long term, the flexibility of in-kind flow is a major upgrade. It also unlocks new financial optionality; rather than selling their bitcoin during a major life event like buying a home, investors can borrow against their ETP holdings and access liquidity without ever parting with the underlying asset and triggering capital gains. Self-custody will always have a place, especially for users in unstable regions or those needing financial sovereignty. But for whales with scale, the trade-offs of holding spot BTC are increasingly hard to justify. Bitcoin ETPs are simply less of a headache: they reduce risk, improve liquidity access, simplify compliance and offer long-term infrastructure for serious capital allocators, allowing big investors to sleep easy at night. The future of bitcoin ownership isn't about whether you can hold your keys, it's about whether you should. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-07-2025
- Business
- Yahoo
When Tornado Cash dev Roman Storm goes on trial so will crypto privacy
A version of this story appeared in our The Guidance newsletter on July 7. Sign up here. Hi! Ed here. If Roman Storm is feeling hard done by, it's understandable. At a time when crypto companies and founders are getting enforcement charges dropped or suspended by the Trump administration, Storm is set to go to trial on money laundering charges beginning July 14. It's true, the Tornado Cash co-founder and developer was indicted by a US grand jury in 2023 for money laundering and sanctions violations. A criminal matter is far more serious than a civil suit brought by the US Securities and Exchange Commission. In this case, the stakes are even higher. Receptive courts The Justice Department accused Storm and his colleague Roman Semenov of handling more than $1 billion for criminals, including the Lazarus Group, the shadowy, North Korean hacking ring that has allegedly looted billions from crypto projects. Even so, US courts have been surprisingly receptive to the arguments mounted by Storm and his financial privacy allies. With support from Coinbase and the Ethereum Foundation, Storm, as well as civil plaintiffs in a separate matter, has argued that the government is putting software code on trial, which is wrong. At first, the tack was deemed a long shot by legal experts. Sure enough, Alexey Pertsev, another developer of the crypto mixer, was convicted of money laundering by a Dutch court and sentenced to a five-year prison term in May 2024 on charges similar to those Storm faces. The Dutch judges rejected Pertsev's argument that he shouldn't be held responsible for smart contracts that automatically process transactions on Tornado Cash. Stunning decision But then last November, a US appeals court stunned the crypto community by ruling the opposite way in a civil case brought against the government by Ethereum devs. In a decision dubbed an 'incredible win,' the court said that when it comes to enforcing sanctions, existing law doesn't cover blockchain-based applications, just people and companies. In other words, the US Treasury Department was wrong to sanction Tornado Cash in 2022. And in March, Treasury, citing 'novel legal and policy issues' raised by 'evolving technology and legal environments,' removed Tornado Cash from its sanctions list. The next month, the Justice Department released a four-page memo stating that it would largely stop pursuing cases against crypto mixers 'for the acts of their end users or unwitting violations of regulations.' Given the direction of travel, Storm and his lawyers were hopeful the charges against him would be dropped. No dice. Now Storm is facing a potential maximum sentence of 20 years if he's convicted. And crypto privacy supporters are confronting a major test of their own. Ripple and Circle are applying to become banks — here's why that mattersRipple, the company that issues RLUSD, and Circle, responsible for stablecoin USDC, have both applied for US National Trust Bank charters, a rare move that if approved would bring them under federal oversight, and closer to the heart of the US financial system. Offshore firms beware — US Judge gives Celsius greenlight to proceed in $4bn lawsuit against TetherA judge's decision to let Celsius proceed with its $4 billion lawsuit against Tether paves the way for US entities to pursue foreign crypto firms, according to a legal expert. FTX freezes $500m in distributions tied to China and crypto-restricted nationsChina's crypto crackdown prevents the FTX Recovery Trust from paying out around $435 million to customers caught up in the fallout from Sam Bankman-Fried's crumbled business empire, according to a Wednesday court filing. Story of the Week Suspicious Polymarket activity triggers furore as bettors claim prediction outcomes are being manipulated Polymarket, the crypto-based prediction market platform, has long been lauded for its accuracy in anticipating event outcomes. Some research shows that the platform's markets, which are swayed by bettors putting real money on the line, often generate odds that are closer to reality than other sources. Four people who participate in Polymarket's prediction markets told DL News that a number of high-rolling bettors appear to be working together to swing the outcomes in their favour. Post of the Week Arthur Hayes, the loquacious crypto investor and blogger, weighed in on a favourite subject this week — loose US monetary and fiscal policies. In light of the US Congress' approval of President Donald Trump's deficit-ballooning budget bill, Hayes predicted stablecoins will turbocharge the government's reliance on debt. 'The stablecoin Trojan horse is already inside the fortress. This isn't DeFi or financial freedom. It's debt monetisation dressed in Ethereum drag," said Hayes. Edward Robinson is the story editor for DL News. Contact the author at ed@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Business Standard
22-07-2025
- Business
- Business Standard
CoinDCX joins list of the biggest crypto breaches in recent times
In a major breach on July 18, Mumbai-based cryptocurrency exchange CoinDCX confirmed a hacking attack that resulted in a loss of approximately $44 million (nearly Rs 368 crore). The incident targeted an internal operational account used for liquidity operations on a partner exchange. The affected account, the company clarified, did not hold any customer assets. Sumit Gupta, co-founder of CoinDCX, described the breach as "sophisticated", revealing that hackers had exploited a server vulnerability. He further stated that the financial loss would be absorbed through the company's treasury reserves, which are 'sufficiently healthy' to cover the damage. The CoinDCX attack comes amid a broader wave of crypto hacks globally, once again raising questions about the actual security of blockchain-based platforms. While blockchains themselves are designed to be secure, the surrounding infrastructure — including wallets, bridges, exchanges, and operational accounts — continues to face vulnerabilities. According to blockchain analysis firm Chainalysis, over $1.7 billion in cryptocurrency was stolen in 2023, following a record $3.8 billion in 2022. Which were the largest crypto hacks? The biggest theft in the sector's history remains the $625 million hack of the Ronin Network in March 2022. This breach targeted the Axie Infinity blockchain game, with hackers — later linked to North Korea's Lazarus Group — making off with Ether and stablecoins. Only a small portion of the stolen funds was recovered. Following closely is the Poly Network hack of August 2021, where over $611 million was stolen. In a rare twist, the anonymous hacker returned most of the funds, claiming the act was carried out 'for fun.' The Binance BNB Bridge suffered a $569 million breach in October 2022 due to a flaw in its smart contract, while Japan's Coincheck exchange lost $532 million in 2018 through vulnerabilities in its hot wallets. In November 2022, FTX, once a major player in the crypto world, lost over $477 million on the same day it filed for bankruptcy. The company confirmed the hack on its Telegram channel, even warning users to delete its apps. Why are cross-chain bridges and DeFi platforms popular targets? A common pattern across recent breaches is the targeting of cross-chain bridges — platforms that allow cryptocurrencies to be transferred between different blockchains. The Wormhole attack in February 2022 resulted in a $325 million theft, while Nomad Bridge lost $190 million shortly after. In March 2023, Euler Finance, a DeFi lending platform, suffered a $197 million flash loan attack. Surprisingly, the attacker later returned much of the stolen funds, citing safety concerns. In May 2024, Japan's DMM Bitcoin exchange reported a $305 million theft, with Lazarus Group again suspected. Bybit, a major global exchange, disclosed a $1.5 billion breach in February, marking one of the largest losses to date. In July last year, India's WazirX suffered a $230 million theft — one of the biggest cyberattacks on an Indian exchange. Many of the affected 15 million investors reportedly faced severe financial hardship. Meanwhile, Iran's largest exchange, Nobitex, lost $90 million amid geopolitical tensions. The stolen funds carried messages allegedly criticising Iran's Revolutionary Guard. How do hackers launder stolen crypto? Tracking stolen crypto assets remains a key challenge. In the WazirX case, Netherlands-based Crystal Intelligence revealed that most of the stolen funds were laundered via TornadoCash, an open-source platform known for anonymising transactions. Only around $6 million remains traceable. Are blockchain projects truly secure? Despite claims of blockchain being 'ultra-secure', repeated cyberattacks suggest otherwise. In 2024, around $2.2 billion worth of cryptocurrencies were stolen. This followed losses of $1.7 billion in 2023 and $3.8 billion in 2022, according to blockchain analysis firm Chainalysis. The figures continue to expose vulnerabilities across exchanges, cross-chain bridges, and decentralised finance (DeFi) platforms. The trend continued into 2024, with fresh breaches reported globally. Even established exchanges like Coinbase have not been immune. In May this year, it estimated losses between $180 million and $400 million following a cyberattack that exploited insider leaks. The company confirmed that multiple contractors and employees working outside the US were paid by hackers to gather internal data. State-sponsored actors, especially North Korea's Lazarus Group, continue to dominate the crypto hacking space. The group has been linked to major breaches, including Ronin, DM Bitcoin, and Bybit. Is crypto security a myth? Experts suggest that while blockchain technology itself may offer robust security features, the infrastructure surrounding it — including bridges, exchanges, and DeFi platforms — has repeatedly proven vulnerable. With evolving tactics such as flash loan attacks, insider threats and state-backed cyber warfare, the future is shaping up to be grim for cryptocurrency security.
