The US Department of Justice Responds to Roman Storm’s Motion to Dismiss
The US Department of Justice (DOJ) has recently issued a response to the motion made by Tornado Cash developer Roman Storm to dismiss the criminal charges brought against him by the government. In a filing submitted on Friday, the DOJ countered several arguments put forth by Storm’s legal team and urged the court to proceed with a formal trial in the case.
DOJ’s Argument Against Roman Storm
On August 23, the DOJ unveiled an indictment against Roman Storm and his co-founder Roman Semenwov, accusing them of being involved in the development, operation, and promotion of the popular crypto mixer platform Tornado Cash. The charges brought by US prosecutors included allegations of money laundering conspiracies, violations of the International Economic Emergency Powers Act (IEEPA), and running an unlicensed money-transmitting business.
- The DOJ outlines the charges against Roman Storm and his co-founder
- The accusations include money laundering and breaching sanctions laws
- The indictment includes charges related to operating an unlicensed money-transmitting business
Response to Storm’s Motion to Dismiss
In response to the indictment, Roman Storm, who is currently in US custody, sought to dismiss the charges filed against him. One of the arguments presented by Storm’s defense was that Tornado Cash should not be considered a money-transmitting business since the platform does not take control of users’ funds at any point in time.
- Roman Storm filed a motion to dismiss the charges
- One of the defense arguments concerned the classification of Tornado Cash as a money-transmitting business
- The defense claimed that because the platform does not control user funds, it should not fall under this classification
However, the DOJ refuted this argument, stating that a money-transmitting business does not necessarily need to have control over user funds, citing guidelines from the Financial Crime Enforcement Network (FinCEN) and Section 1960 of the US Constitution. According to the DOJ, platforms that facilitate the transfer of value between users while maintaining anonymity can be considered money transmitters in the crypto space.
- The DOJ rejects Storm’s argument regarding control of user funds
- Guidelines from FinCEN and US laws were cited to refute the defense’s claims
- The definition of money transmitters in the crypto space is clarified by the DOJ
Control Over User Transactions
Furthermore, the US prosecutors pointed out that Storm and his team retained control over certain user transactions on Tornado Cash between August 2019 and March 2022, the period referenced in the indictment. This contradicts Storm’s assertion that developers had minimal influence over user actions on the platform.
- Evidence shows that Storm and his team controlled user transactions on Tornado Cash
- Developers’ involvement in user transactions contradicts Storm’s claims
- The DOJ highlights the influence that developers had over user actions on the platform
According to a statement from the petition, Storm and his co-founder personally approved relayers authorized to process withdrawals and implemented a “relayer algorithm” to assign relayers to specific customer withdrawals in February and March 2022.
Legal Implications for Tornado Cash
The DOJ’s response signifies a significant development in the legal battle surrounding Tornado Cash and its developers.
- The DOJ’s stance on Tornado Cash’s access to sanctioned parties creates legal repercussions
- The case raises questions about developers’ liability for platform usage
- Several pro-crypto organizations have shown support for the defendants through amicus briefs
This case could potentially set a precedent for crypto-related legal matters in the United States.
Hot Take: What’s Next for Tornado Cash?
The ongoing legal battle between the US government and the developers of Tornado Cash has far-reaching implications for the crypto community. As the case continues to unfold, the outcome could shape the future regulatory landscape of the crypto industry.
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