DOJ Challenges Dismissal of Charges Against Tornado Cash Developer

The U.S. Department of Justice (DOJ) has rebutted Tornado Cash developer Roman Storm's attempts to dismiss his criminal indictment, insisting that the matter involves complex facts best assessed by a jury. The DOJ responded robustly in a filing on Friday, challenging the defense's depiction of the cryptocurrency mixing service. Tornado Cash is accused of being a money-transmitting entity used by criminal groups like North Korea’s Lazarus Group to launder money.

Consequently, Storm and another developer, Roman Semenov, face money laundering conspiracy charges, operating without a money-transmitting license, and violating sanctions laws. In March, Storm's lawyers argued for dropping the charges, claiming Tornado Cash is not a "financial institution" because it is a non-custodial service, and Storm had no control over who used it.

They maintained that merely creating the service’s code does not make Storm responsible for its misuse. The DOJ refuted these claims, describing Tornado Cash as a mixer launched in 2019 with various components, such as a website, user interface, and smart contracts. The filing stressed that Storm's self-serving statements do not warrant dismissing the indictment.

The DOJ also contested Storm's assertions regarding the control mechanisms within Tornado Cash, indicating that evidence will show that Storm and his associates had significant control over the platform. They are preparing to showcase this during Storm’s trial set for September, while Semenov remains at large.

This legal confrontation highlights the ongoing scrutiny over cryptocurrency platforms and the challenges in regulating and prosecuting activities within this rapidly evolving sector.