Connect with us

Hi, what are you looking for?

Economy

DOJ Counters Tornado Cash Developer Roman Storm’s Defense, Asserting Money Transmitting Operations

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. 

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.

US authorities have alleged that Tornado Cash has been used by criminal entities, including North Korea’s Lazarus Group, for money laundering purposes.

DOJ Says Tornado Cash Was Launched as a Mixer


In their motion to dismiss the indictmentStorm’s attorneys argued that Tornado Cash is not a custodial mixing service and does not meet the definition of a “financial institution.”

They also contended that Storm had no control over the service and could not prevent entities like Lazarus Group from using it. 

The defense’s position was that merely developing the code for the project does not equate to operating a money laundering entity.

However, in the DOJ’s recent filing, they disputed the defense’s characterization of Tornado Cash. 

They 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.” 

The DOJ asserted that Storm cannot dismiss the indictment based on his own contested view of how the Tornado Cash service operated or his self-serving version of his intent.

The filing also countered Storm’s assertions regarding the functionality of the Tornado Cash interface and the control individual users had over the deposit and withdrawal process.

The DOJ provided screenshots and argued that Storm and his co-founders maintained control over the mixer, at least during the time period covered by the charging document (2019 to August 2022).

The DOJ’s filing repeatedly referenced evidence that they intend to introduce during the trial, including details about how Storm and other Tornado Cash founders built and developed the system and how people utilized the service.

Storm is scheduled to stand trial in September, while Semenov remains at large. 

Storm Asked For Support Against Money Laundering Charges


Earlier this year, Storm sought support from right-to-privacy advocates in anticipation of his upcoming criminal trial.

At the time, Storm said that his legal team was preparing a strong defense for his September 2024 trial. 

“Whether you’re [a] passionate developer like me involved with Web3 or just care about software and privacy, this legal battle will affect you. This case will set a major precedent for years to come,” he said. 

In response, the Arbitrum DAO submitted a proposal that called for the allocation of approximately $1.3 million worth of Arbitrum (ARB) tokens from the community wallet to assist Storm.

However, the submitter has since removed the proposal without providing any reasons.

A crowdfunding campaign on GoFundMe, intended to collect legal fees for Storm and Pertsev, was canceled on February 16 due to a breach of the platform’s terms of service that could expose GoFundMe, its employees, or users to potential harm or liability.

As reported, the US Treasury has added Tornado Cash to its Specially Designated Nationals list, effectively banning Americans from using this mixer. 

 

The post DOJ Counters Tornado Cash Developer Roman Storm’s Defense, Asserting Money Transmitting Operations appeared first on Cryptonews.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

Deutsche Bank, a German multinational investment bank, joined Singapore’s Monetary Authority of Singapore’s (MAS) Project Guardian on asset tokenization Tuesday in a press release....

Economy

Paxos, a leading regulated blockchain and tokenization infrastructure platform, appointed Christopher Giancarlo, the former Chairman of the United States Commodity Futures Trading Commission (CFTC),...

Economy

Bitcoin Price Prediction Bitcoin is currently trading at $61,500, with a 24-hour trading volume of $28.28 billion. The cryptocurrency has dropped about 2.25% in...

Economy

A recent influx of investor disclosures has Bitwise, one of the United States’ leading Bitcoin ETF providers, “incredibly bullish” on BTC. The Top Institutional...

Economy

The XRP (XRP) price continues to languish to the south of its 21DMA near $0.50, not helped by the news that Binance will discontinue...

Economy

One of the largest pension funds in the United States disclosed on Tuesday a $162 million allocation to the nation’s leading Bitcoin spot ETF...

You May Also Like

Financial Advisors

[#item_full_content]

Financial Advisors

[#item_full_content]

Financial Advisors

The humongous outbreak of the dreaded coronavirus has brought about a groundbreaking change in what the world perceived as ‘normal’. With an estimated 280,391,189...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 Respect Investment. All Rights Reserved.