The U.S. Department of Justice has recently challenged Tornado Cash developer Roman Storm’s attempt to dismiss a criminal indictment against him. The DOJ firmly stated its belief that the evidence they have gathered supports the charges brought against Storm in connection to Tornado Cash, a crypto mixing service.
In response to the defense’s motion, the DOJ emphasized that the disputed facts should be assessed by a jury rather than being resolved through an early-stage motion. The charges against Storm, along with co-developer Roman Semenov, include allegations of conspiring to commit money laundering, operate an unlicensed money transmitter, and violate sanctions laws.
Storm’s defense argued that Tornado Cash does not meet the criteria of a custodial mixing service or financial institution and that Storm lacked the ability to control or prevent illicit use by entities such as North Korea’s Lazarus Group. However, the DOJ countered these claims by highlighting the comprehensive nature of Tornado Cash, which includes a website, user interface, smart contracts, and a network of relayers.
Furthermore, the DOJ disputed Storm’s assertions about user control within the Tornado Cash system and emphasized the evidence they plan to present during the upcoming trial. The DOJ’s filing also outlined the level of control maintained by Storm and his co-founders over the mixer, particularly during the time period referenced in the charges.
As the legal proceedings move forward, Storm is scheduled to stand trial in September, while Semenov remains at large. This case underscores the complexities surrounding the regulatory scrutiny faced by developers in the crypto and NFT industry, particularly in relation to services that facilitate anonymity and privacy in transactions.
