US Justice Department Denies Tornado Cash Developer's Dismissal Motion

The U.S. Department of Justice (DOJ) has rejected Tornado Cash developer Roman Storm's request to dismiss criminal charges, citing disputed facts presented by the defense that are more appropriate for jury consideration. The DOJ maintains its position that Storm and his co-developer conspired to commit money laundering by operating an unlicensed money transmitter and violating laws through Tornado Cash, a crypto mixing service.

Tornado Cash Developer's Motion to Dismiss Criminal Charges Denied by U.S. Department of Justice

In a significant blow to the defense, the U.S. Department of Justice (DOJ) has rejected the request of Tornado Cash developer Roman Storm to dismiss criminal charges against him. The DOJ maintains that the defense's filing contains disputed facts that are more appropriate for jury consideration than early-stage motion arguments.

The charges stem from allegations that Storm and his fellow developer, Roman Semenov, conspired to commit money laundering and violated laws by operating an unlicensed money transmitter through Tornado Cash, a crypto mixing service designed to anonymize blockchain transactions.

DOJ Counters Defense Arguments

In its filing, the DOJ disputes Storm's characterization of Tornado Cash as a mere software code for mixing services and not a money laundering operation. The agency argues that the service encompasses a complex system involving a website, user interface, smart contracts, and a network of "relayers."

Furthermore, the DOJ denies Storm's claims that he lacked control over Tornado Cash. The filing alleges that Storm and his co-founders maintained control over the mixer from 2019 to August 2022.

Evidence of Developer Control Presented

To support its claims, the DOJ presented screenshots illustrating the disputed functionality of Tornado Cash. The evidence allegedly shows Storm's involvement in building and developing the system and the usage patterns of the service.

Specifically, the DOJ highlighted that Tornado Cash had a "mixing fee" mechanism, which it argues indicates that the developers had control over the funds deposited by users. The filing also notes that Storm had the authority to blacklist certain addresses, which further suggests his ability to influence the use of the service.

DOJ Challenges Storm's Intent

Additionally, the DOJ contests Storm's assertion that he had no knowledge or intent to facilitate money laundering. The filing argues that Storm knew or should have known that Tornado Cash was being used by criminals, including North Korea's Lazarus Group.

Unconstitutional to Dismiss Indictment

The DOJ emphasizes that dismissing the indictment based on contested views of how Tornado Cash operated or Storm's intent would be unconstitutional. It argues that the evidence presented in its filing supports the charges and that it is for a jury to determine the facts and the guilt or innocence of the defendant.

Trial Set for September

Storm is scheduled to stand trial in September, while Semenov remains at large. The DOJ's rejection of the motion to dismiss is a major setback for the defense and strengthens the government's position in the case.

The verdict in the Tornado Cash case will have significant implications for the cryptocurrency industry. It will establish legal precedents regarding the role of developers in preventing money laundering and the extent to which crypto mixing services can be held accountable for facilitating illicit transactions.