Binance Under Scrutiny as IRS Links Tornado Cash Co-Founder to $533K in USDT Transfers

In a recent court testimony, IRS Criminal Investigation Special Agent Stephan George revealed that Roman Storm, a co-founder of the privacy-focused cryptocurrency mixer Tornado Cash, controlled a Binance account involved in over $533,000 worth of USDT transfers. The funds were allegedly moved on August 9, 2022, and distributed across three separate wallets. Prosecutors further presented chat logs suggesting Storm directed $2.6 million in payments to fellow co-founders, with one message explicitly stating, "I..." (incomplete in original text). This development highlights ongoing regulatory scrutiny of cryptocurrency exchanges like Binance and their potential connections to illicit financial activities. The case underscores the increasing focus by authorities on tracing transactions involving privacy tools and offshore crypto movements, particularly as enforcement agencies aim to establish clearer links between mixers and alleged money laundering operations. The testimony forms part of a broader investigation into Tornado Cash, which has faced sanctions and legal challenges over its alleged role in enabling criminal financial flows. As of July 2025, this case continues to shape discussions around exchange accountability and the compliance challenges posed by decentralized finance protocols.

IRS Agent Links Tornado Cash Co-Founder to Binance Transfers and Offshore Activity

IRS Criminal Investigation Special Agent Stephan George testified that Roman Storm, one of Tornado Cash's co-founders, controlled a Binance account tied to over $533,000 in USDT transfers. The funds were allegedly moved on August 9, 2022, and distributed across three wallets.

Prosecutors presented chat logs suggesting Storm directed $2.6 million payments to fellow co-founders, with one message stating, "I sent you guys 2.6 million each." Additional communications referenced offshore accounts and real estate purchases, with another co-founder remarking, "I will send some TORN later, to avoid getting busted."

AnChain.AI analysis revealed 96% of Tornado Cash users accessed the service through its web interface, underscoring the platform's mainstream reach despite its association with illicit transactions.

Binance Coin Surges Past $800, Sets New All-Time High

Binance Coin breached the $800 threshold for the first time, peaking NEAR $804 amid a sustained month-long rally. The asset gained over 20% as bullish sentiment dominated cryptocurrency markets.

The milestone underscores growing institutional and retail confidence in exchange-linked tokens. Market observers now speculate whether BNB can sustain momentum beyond psychological resistance levels.

Bitcoin Traders Face Bull Trap Concerns at $118K Amid Mixed Market Signals

Bitcoin's price action has entered a consolidation phase, hovering around $118,000 after briefly touching an all-time high of $123,000 earlier this month. The current level represents a 3.9% retreat from its peak, leaving traders divided on whether this signals a continuation or correction.

Market data reveals a split narrative. CryptoQuant analysts note a surge in long positions on Binance, with the long/short ratio skewing heavily bullish in the $116,000–$120,000 range. This contrasts sharply with the previous consolidation period between $100,000 and $110,000 when short positions dominated before the eventual breakout.

The current positioning raises concerns about potential liquidations if the market reverses. 'When sentiment becomes this one-sided, it often precedes sharp moves against the crowd,' remarked one analyst, drawing parallels to previous market cycles where overcrowded trades led to violent squeezes.

Pi Coin Listing Speculation Intensifies Amid Binance Wallet Integration

Rumors of Pi Coin's potential listing on Binance have gained traction following the appearance of Binance-related support options in the Pi Wallet. The community notes 'Binance Connect Support' and 'Binance P2P Support' features under the wallet's Help & Support tab—interpreted as preparatory steps toward liquidity integration.

Neither Binance nor Pi Network's Core team has confirmed the development, leaving market participants to parse technical signals. Binance Connect, the exchange's discontinued fiat on-ramp service, remains a focal point in speculation about infrastructure alignment between the projects.

Binance Alpha to Launch DePHY Network (PHY) with Airdrop on July 26, 2025

The DePHY Network (PHY) is poised to make waves in the cryptocurrency sector with its upcoming launch on Binance Alpha. Scheduled for July 26, 2025, the project aims to advance Decentralized Physical Infrastructure Networks (DePIN), marking a significant step in blockchain's integration with real-world infrastructure.

The airdrop announcement has already generated considerable interest, reflecting growing investor appetite for innovative decentralized solutions. Binance's backing underscores the exchange's continued support for emerging blockchain technologies.

Roman Storm Trial Heats Up as Feds Claim Control Over Tornado Cash

IRS Special Agent Stephan George testified that Tornado Cash co-founder Roman Storm exercised control over funds linked to the crypto mixing service, citing blockchain data from Binance and Crypto.com. Internal communications between Storm and other co-founders allegedly support these claims.

Storm's defense team is preparing a mistrial motion, arguing no evidence connects a $250,000 pig butchering scam loss to Tornado Cash transactions. The prosecution's case relies on LIFO accounting and blockchain analytics tools like Etherscan and Chainalysis.