The U.S. Department of Justice has issued a rebuttal to Tornado Cash developer Roman Storm’s motion to dismiss the government’s criminal charges against him. In a file submitted On Friday, the DOJ rejected several arguments made by the defendant’s lawyers while urging the court to ensure the case goes to trial.
DOJ responds to Roman storm
On August 23, the DOJ announcement an indictment against Storm and fellow Tornado Cash co-founder Roman Semenwov for their role in the “creation, operation and promotion” of the popular crypto mixing platform. US prosecutors charged both parties with conspiring to launder money, violating the International Economic Emergency Powers Act (IEEPA) and operating an unlicensed money transmitting business.
In response to these accusations, Storm, who is currently detained by US authorities, filed a request rejection on March 29. One of the defendant’s arguments stated that Tornado Cash could not be classified as a money transfer business because the platform does not acquire control of users’ funds at any point.
However, the DOJ rejected this argument, saying that a money transfer business does not necessarily have to control users’ funds in accordance with Financial Crime Enforcement Network (FinCEN) guidelines and Section 1960 of the U.S. Constitution. The complainant specifies that according to FinCEN, money transmitters in the crypto space are platforms that ensure the transfer of value between two clients while preserving their anonymity.
Additionally, US prosecutors also highlighted that Storm and his fellow developers maintained control over certain user transactions on Tornado Cash between August 2019 and March 2022, the period mentioned in the indictment. This statement contradicts Storm’s previous claim that developers had little influence over user actions on the mixer.
A statement from the petition read:
…the founders of Tornado Cash personally approved each individual relay authorized to process withdrawals and maintained a list of these relays. Later, around February and March 2022, they designed
and deployed a “relay algorithm,” which used a formula to assign relays to particular customer withdrawals.
The legal battle over Tornado Cash intensifies
The DOJ’s latest petition represents a new twist in what could be a crucial lawsuit for Web3 developers.
While the DOJ has built an argument about Tornado Cash’s access to sanctioned parties such as the North Korean hacker group Lazarus, US prosecutors’ attempt to hold developers accountable for use of their platform has sparked criticism. many emotions in the crypto community. .
So far, these concerns have resulted in three pro-crypto organizations filing an amicus brief in support of the defendants. In clear streetcars, this is a crucial case capable of setting a precedent in American crypto.
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