DOJ Counters Tornado Cash Developer’s Motion To Dismiss

The U.S. Department of Justice has issued a response to the government’s motion to dismiss criminal charges against Tornado Cash developer Roman Submitted files On Friday, the Justice Department rejected several arguments by the defendants’ lawyers and urged the court to give the case a proper trial.

Justice Department hits back at Roman Storm

On August 23, the Department of Justice announced Charges against Storm and Tornado Cash co-founder Roman Semenwouf for their roles in “creating, operating, and promoting” the popular cryptocurrency mixer platform. U.S. prosecutors charged both parties with money laundering, violations of the International Economic Emergency Powers Act (IEEPA), and conspiracy to operate an unauthorized money transfer business.

Storm, who is currently in U.S. custody, filed a motion to dismiss these charges on March 29. One of the defendants’ arguments stated that Tornado Cash, like a platform, cannot be classified as a money transfer business. We have no control over your funds at any time.

However, the Department of Justice rejected this argument, saying money transfer providers do not necessarily have to demonstrate control of user funds, according to Financial Crimes Enforcement Network (FinCEN) guidelines and Section 1960 of the U.S. Constitution. According to FinCEN, the plaintiffs state that money transfer companies in the cryptocurrency space are platforms that guarantee the transfer of value between two customers while maintaining anonymity.

Additionally, U.S. prosecutors allege that Storm and his fellow developers maintained control over certain user transactions on Tornado Cash from August 2019 to March 2022 mentioned in the indictment. He also emphasized that. This statement refutes Storm’s previous claim that the developer had little influence over user actions on the mixer.

The petition statement read:

… The founders of Tornado Cash personally approved individual relayers authorized to process withdrawals and maintained a list of these relayers.Then, from February to March 2022, they
We then introduced an “intermediary algorithm” that uses a formula that assigns intermediaries to specific customer withdrawals.

Legal battle over Tornado Cash intensifies

The Justice Department’s latest petition marks a new twist in what could be a significant lawsuit for Web3 developers.

The Justice Department is debating access to Tornado Cash by sanctioned parties such as North Korea’s Lazarus hacker group, but attempts by U.S. prosecutors to hold developers accountable for their use of the platform have stalled. , has caused a lot of emotion in the crypto community. .

Due to these concerns, three crypto advocacy groups have so far filed court briefs in support of the defendants. In Transparent Streetcar, this is a pivotal case that could potentially set a precedent in US cryptocurrencies.

Total crypto market cap valued at $2.312 trillion on the daily chart | Source: TOTAL chart on

Featured image from NBC, chart from Tradingview

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