Unprecedented DOJ Rejection of Tornado Cash Developer’s Motion
The US Department of Justice (DOJ) denied Tornado Cash developer Roman Storm’s motion to dismiss criminal charges. The DOJ argued that disputed facts presented in the defense’s filing should be decided by a jury, not in an early-stage motion.
Charges Against Roman Storm and Roman Semenov
- The DOJ charged Storm and Semenov with conspiracy to commit money laundering, operate an unlicensed money transmitter, and violate sanctions laws through Tornado Cash.
Allegations of Money Laundering
- US authorities claim that Tornado Cash, allegedly used by criminal entities like North Korea’s Lazarus Group, is used for money laundering.
DOJ’s Perspective on Tornado Cash as a Mixer
The DOJ’s recent filing disputed the defense’s portrayal of Tornado Cash, stating that it was introduced as a mixer in 2019. They argued that Storm cannot dismiss the indictment based on his interpretation of Tornado Cash’s operations or intent.
- The DOJ asserted that Storm and his co-founders controlled the mixer, as evidenced by screenshots provided in the filing.
Roman Storm Seeks Community Support Against Charges
Storm reached out to privacy advocates for assistance ahead of his upcoming trial, emphasizing the potential implications for the technology sector. Despite initial community support, certain efforts to raise funds for legal defense were thwarted.
- The Arbitrum DAO proposed allocating $1.3 million worth of ARB tokens to assist Storm, but the proposal was withdrawn.
- A GoFundMe campaign for legal fees was canceled due to terms of service violations.
Closing Thoughts
In the face of legal challenges, Roman Storm’s case highlights the complexities surrounding privacy, technology, and financial regulations. As the legal battle unfolds, it underscores the potential impact on developers and the broader cryptocurrency community. Stay tuned for updates on this evolving situation.
Sources:
[US Department of Justice](#)
[Arbitrum DAO Proposal](#)
[GoFundMe Campaign](#)
[US Treasury Update on Tornado Cash](#)