USDT Transactions Under Scrutiny as IRS Links Tornado Cash Co-Founder to Binance Transfers

In a recent development, IRS Criminal Investigation Special Agent Stephan George testified that Roman Storm, a co-founder of Tornado Cash, controlled a Binance account associated with over $533,000 in USDT transfers. The funds were allegedly moved on August 9, 2022, and distributed across three wallets. Prosecutors further presented chat logs suggesting Storm directed $2.6 million in payments to fellow co-founders, with one message explicitly stating, "I...". This case highlights the increasing scrutiny on cryptocurrency transactions and the potential legal ramifications for those involved in offshore activities. As the crypto market continues to evolve, such incidents underscore the importance of regulatory compliance and transparency in digital asset transactions. The implications of this case could have far-reaching effects on the perception and regulation of stablecoins like USDT in the financial sector.

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.

Tether and INHOPE Expand Collaboration to Combat Online Child Exploitation

Tether, the issuer of the USDT stablecoin, has deepened its partnership with INHOPE, an international network focused on eradicating Child Sexual Abuse Material (CSAM) online. The collaboration aims to enhance financial tracking mechanisms to disrupt illicit transactions tied to child exploitation.

Since 2023, Tether's blockchain infrastructure has aided law enforcement by providing transparent transaction trails. The alliance with INHOPE's 57-nation hotline network strengthens anonymous reporting systems and reinforces compliance in crypto ecosystems.

This public-private initiative underscores the digital asset industry's growing role in addressing systemic online harms. Cross-sector coordination is becoming critical as blockchain analytics evolve to combat financial crime.

Stablecoin Giant Tether Rekindles Plans to Break Into US Market

Tether is advancing its strategy to re-enter the US market, capitalizing on a favorable regulatory shift following the signing of the GENIUS Act by President Donald Trump. CEO Paolo Ardoino confirmed the move, emphasizing a focus on institutional markets, payments, and interbank settlements.

The legislation marks a turning point for stablecoins, potentially enabling broader participation from banks and tech firms. Tether's resurgence comes after years of regulatory scrutiny and a $60 million settlement with US authorities.

USDT's circulation continues to grow despite past challenges, signaling renewed confidence in the stablecoin's role in global finance.