Tornado Cash Creator Strikes Back: Roman Storm Files Motion to Dismiss Money Laundering Charges

Roman Storm, the developer of Tornado Cash, has filed a motion to dismiss the criminal indictment charges against him. Storm argues that Tornado Cash provides financial privacy to legitimate cryptocurrency users and that building the software is not a crime. The motion disputes the Justice Department's allegations that Tornado Cash facilitated money laundering, arguing that Storm did not control the protocol and could not prevent its use by illicit actors.

Tornado Cash Developer Roman Storm Files Motion to Dismiss Criminal Charges

In a bold legal move, Roman Storm, the developer behind the controversial Tornado Cash cryptocurrency mixing service, has filed a motion to dismiss the criminal indictment against him in the United States District Court for the Southern District of New York.

Storm's motion, filed on Friday evening, asserts that he is a software developer who, along with his US-based company, created Tornado Cash to enhance financial privacy for legitimate cryptocurrency users, a purpose that does not constitute a crime.

Charges Stemming from Alleged Money Laundering

Storm was arrested in the Netherlands last year for his involvement with Tornado Cash, which has been utilized for money laundering activities. However, his legal team maintains that he merely published code that anyone could use and that developing Tornado Cash does not equate to committing money laundering.

The US Department of Justice alleges that Tornado Cash has facilitated over $1 billion in illicit transactions by entities such as North Korea's Lazarus Group.

Defining Tornado Cash: A Protocol, Not a Service

In its motion, Storm's legal team provides a detailed definition of Tornado Cash, describing it as a set of non-custodial smart contracts that grant users complete ownership and control over their assets without relying on intermediaries or service providers.

The motion challenges the government's characterization of Tornado Cash as a "mixer" or "service," arguing instead that it is a decentralized protocol that operates autonomously. Furthermore, Storm's team contends that he could not have controlled the use of Tornado Cash by Lazarus and similar entities.

Charges Lack Legal Basis

The motion asserts that the charges against Storm are irrelevant because Tornado Cash does not meet the definition of a financial institution. Users maintain control over their funds, and the protocol is free and open-source software that does not collect any fees.

Storm's team argues that he could not have conspired to launder funds or operate as a money transmitter since there is no Tornado Cash enterprise that he could have been involved with. Additionally, the motion highlights that Storm and his fellow developers at Peppersec never conspired with alleged criminals.

Selective Enforcement and Jurisdictional Differences

The motion also criticizes the Department of Justice for selectively enforcing the law against Tornado Cash, while ignoring other cryptocurrency projects that may have been involved in similar activities.

Furthermore, the motion notes that the legal framework in the Netherlands, where Storm was arrested and initially tried, differs significantly from that of the United States.

Charges Echo Those Against Alexey Pertsev

The charges against Storm mirror those faced by Alexey Pertsev, another Tornado Cash developer who was arrested in August 2022. Pertsev is currently on trial in the Netherlands, also facing money laundering allegations.

Motions Preceding Dismissal Request

Prior to filing the motion to dismiss, Storm's legal team filed two additional motions. The first seeks to compel the Department of Justice to provide any communications between US and Dutch authorities regarding Storm's case.

Conclusion

Roman Storm's motion to dismiss charges against him presents a forceful case that his actions as a developer do not constitute criminal activity. The motion challenges the definition of Tornado Cash, the lack of evidence against Storm, and the selective enforcement of the law.

The outcome of this case has significant implications for the future of cryptocurrency development and the boundaries of digital privacy. If Storm's motion succeeds, it could potentially set a precedent for how the legal system treats software developers and the use of privacy-enhancing technologies in the cryptocurrency realm.