Tornado Cash

Tornado

Update (Sept. 27, 1:00 am UTC): This article has been updated to add information throughout.
Roman Storm, a developer and co-founder of Tornado Cash, will face criminal trial after a judge denied his motion to dismiss a case brought by the United States government.
In a Sept. 26 telephone conference, New York district court Judge Katherine Polk Failla denied Storm’s bid to toss three federal charges brought by the Justice Department, saying government prosecutors had lodged plausible allegations against him.
Storm and fellow co-founder Roman Semenov were <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/tornado-cash-co-founders-charged-with-money-laundering-sanctions-violations-ofac" rel="null" target="null" text="null" title="null">charged in August</a> 2023 with conspiracy to commit money laundering, conspiracy to commit sanctions violations and conspiracy to operate an unlicensed money-transmitting business.
Failla said she “cannot simply accept Mr. Storm’s narrative that he is being prosecuted merely for writing code,” adding that she was convinced Tornado Cash was different from other <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/open-finance-vs-decentralized-finance" rel="null" target="null" text="null" title="null">financial</a> services or money-transmitting firms.
According to the charges, the platform “was not an altruistic venture” either, Failla said. She noted the Justice Department’s accusation that Tornado Cash received nearly $1 million in funding from a venture capital firm with the expectation it would get a cut of the profits.
Jake Chervinsky, the chief legal officer of crypto venture firm Variant, <a data-ct-non-breakable="null" href="https://x.com/jchervinsky/status/1839412423096467753" rel="null" target="null" text="null" title="null">wrote</a> on X that Failla’s ruling was “an assault on the freedom of software developers everywhere.”
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 Source: <a data-ct-non-breakable="null" href="https://x.com/jchervinsky/status/1839412423096467753" rel="null" target="null" text="null" title="https://x.com/jchervinsky/status/1839412423096467753">Jake Chervinsky</a>
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“This will go down in history as a perversion of law and a travesty of justice,” he added. “It will go down on appeal, if that’s what it takes.”
Storm — who has pleaded not guilty — <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/tornado-cash-roman-storm-dismiss-charges-money-laundering" rel="" target="_self" text="null" title="https://cointelegraph.com/news/tornado-cash-roman-storm-dismiss-charges-money-laundering">argued in his March dismissal bid</a> that Tornado Cash was open source and not under his control. He positioned himself as a <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/what-is-cypherpunk" rel="null" target="null" text="null" title="null">developer</a> who made software “to provide financial privacy to legitimate cryptocurrency users.”
Related:<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-tornado-cash-legal-fund" rel="null" target="null" text="null" title="null"> Crypto community backs Tornado Cash devs with $2.3M legal fund</a>
Prosecutors <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/doj-challenges-motion-to-dismiss-tornado-cash-co-founder-s-charges" rel="null" target="null" text="null" title="null">opposed the bid</a>, contesting the characterization of Tornado Cash and alleged Storm “reaped millions of dollars in profits” while knowing the platform was being used for illicit money laundering.
Storm’s trial is slated for Dec. 2. He faces a maximum possible sentence of 45 years in prison if found guilty on all three charges.
Tornado Cash’s third co-founder, Alexey Pertsev, was<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/tornado-cash-developer-guilty" rel="null" target="null" text="null" title="null"> found guilty of laundering</a> $1.2 billion through the platform at the Netherlands ‘s-Hertogenbosch Court of Appeal in May and was sentenced to five years and four months in prison.
He is preparing to appeal his conviction.
Semonov, a Russian national, is still at large.
Magazine:<a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/tornado-cash-2-0-the-race-to-build-safe-and-legal-coin-mixers/" rel="null" target="null" text="null" title="null"> Tornado Cash 2.0 — The race to build safe and legal coin mixers</a>

Tornado Cash’s Roman Storm to stand trial after judge denies dismissal

Cointelegraph

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