IRS Exposes Tornado Cash’s Roman Storm: Binance Funds & Offshore Shenanigans Uncovered

Another day, another crypto scandal—this time with a side of IRS muscle. Tornado Cash’s Roman Storm finds himself in the crosshairs as investigators trace Binance-linked funds and offshore maneuvers. Who said privacy coins were the only things getting mixed?

Follow the money—or try to. The feds claim Storm’s dealings bypassed more regulations than a DeFi yield farm dodges auditors. Meanwhile, Binance’s shadow looms large—because when isn’t it involved?

Offshore accounts, opaque transactions, and a sprinkle of regulatory defiance. Just another chapter in crypto’s love affair with 'creative compliance.'

Closing thought: If privacy is a human right, why does it always smell like tax evasion? Stay tuned—this one’s got legs.

Storm Allegedly Sent $2.6 Million Each to Co-Founders

Prosecutors showed chat logs between Tornado Cash’s founding trio:,, and. In one message, Storm wrote:

“I overloaded 8 million yesterday.”

Another message stated:

“I sent you guys 2.6 million each.”

Agent George said these communications indicated Storm had access to the funds and decision-making power over the wallet in question.

AUSA: What does this tell you?
Agent George: That Roman Storm has control over that Binance account. And you can conclude that Mr. Storm also had access to 2.6 million.

In a separate message, Storm reportedly told a colleague to:

“Give her a task to f**ing open various offshores… and to buy real estate.”*

Prosecutors also read a message from Semenov stating:

“I will send some TORN later, to avoid getting busted.”

The prosecution argued these messages revealed intent to obscure transactions and profit from Tornado Cash’s operations.

96% of Tornado Cash Users Relied on Web Interface

Earlier in the day, prosecution expertof AnChain.AI testified thatof users accessed Tornado Cash through its user interface (UI), not the command line. 

He saidshifted to CLI usage only after US sanctions were imposed. Werlau said this behavior suggested a deliberate attempt to avoid detection.

During cross-examination, Roman Storm’s defense challenged Werlau’s conclusions. He emphasized that Tornado Cash’s smart contract pools became, meaning neither Storm nor the DAO could change them.

Klein also clarified that Tornado’s UI did not handle transactions directly. Deposits and withdrawals required interacting with Ethereum’s smart contracts, not any centralized interface.

Meanwhile, prosecutors presented an email from an earlier witness, Ms. Lin, addressed to Tornado Cash’s public inbox. Judge Failla warned the jury not to treat its content as fact. 

This first witness in Roman's trial immediately caught my attention bc the victim was a classic Pig Butchering case.

The only issue is….uh…..those scammers don't use Tornado Cash? And they never have?

So, like, wtf? https://t.co/27MlcXvc0z

The email’s inclusion may relate to the defense’s previously stated mistrial concerns, though no motion was filed.

What’s Next in the Tornado Cash Trial

The prosecution is expected to rest its case tomorrow morning. A separate hearing on theis still pending.

Storm’s defense is preparing to present its side, focusing on the immutability of Tornado Cash and Storm’s lack of control after deployment.