“Storm suggested creating a version of Tornado with KYC / AML enabled, but Tornado’s unnamed venture capital investors were dismissive, saying, "I just don’t know if anyone will actually want this."”
Prosecutors say Tornado Cash laundered more than $1 billion, including $615 million North Korea’s Lazarus Group stole from the Ronin Network. One founder suggested a compliant version and the investors waved it off. Roman Storm is arrested and Roman Semenov is at large. The VCs who funded it and killed the compliance idea go unnamed in the indictment.