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US Department of Justice Rejects Motion to Dismiss Charges
The US Department of Justice (DOJ) has rejected Tornado Cash developer Roman Storm’s motion to dismiss criminal charges, arguing that the defense’s filing presented disputed facts that should be weighed by a jury rather than being resolved in an early-stage motion.
Charges Against Tornado Cash Developers
Storm, along with fellow developer Roman Semenov, was charged by the DOJ with conspiracy to commit money laundering, conspiracy to operate an unlicensed money transmitter, and conspiracy to violate sanctions laws through the creation and operation of Tornado Cash.
DOJ’s View on Tornado Cash
US authorities have alleged that Tornado Cash has been used by criminal entities, including North Korea’s Lazarus Group, for money laundering purposes. The DOJ stated that the service was announced in 2019 as a mixer and comprised a website, user interface, a combination of smart contracts, and a network of “relayers”.
DOJ’s Response to Defense’s Arguments
In their motion to dismiss the indictment, Storm’s attorneys argued that Tornado Cash is not a custodial mixing service and does not meet the definition of a “financial institution.” However, the DOJ disputed the defense’s characterization of Tornado Cash and maintained that Storm and his co-founders maintained control over the mixer.
Upcoming Trial and Support for Storm
Storm is scheduled to stand trial in September, while Semenov remains at large. Storm sought support from right-to-privacy advocates in anticipation of his upcoming criminal trial. The Arbitrum DAO submitted a proposal to assist Storm, but it was later removed without providing any reasons.
Legal Challenges and Response
A crowdfunding campaign on GoFundMe, intended to collect legal fees for Storm and Pertsev, was canceled due to a breach of the platform’s terms of service. The US Treasury has added Tornado Cash to its Specially Designated Nationals list, effectively banning Americans from using this mixer.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
