DeFi Legal Chief Criticizes DOJ Approach to Tornado Cash Case: Trial Set for September
Summary:
DeFi Education Fund's legal chief, Amanda Tuminelli, criticizes the U.S. Department of Justice (DOJ) for their handling of the case against crypto mixer Tornado Cash developer, Roman Storm. She condemns the DOJ for inaccuracies, disregard for technological evolution, and misuse of the law. Tuminelli also asserts that proposed U.S. laws regarding money transfer must not inaccurately penalize software developers, while critics warn of potential internet freedom restrictions. The trial for Storm is set for September, with a co-defendant still at large.
Amanda Tuminelli, the legal chief of DeFi Education Fund, has criticized the U.S. Department of Justice (DOJ) allegations surrounding the case against cryptocurrency mixer Tornado Cash and its developer, Roman Storm, for their apparent dismissal of privacy rights and several “exaggerated claims.” The DOJ on April 26 rebuffed the move to dismiss accusations of conspiracy and money laundering against Storm-- a response that Tuminelli deems is replete with technical mistakes, evident disregard for privacy and emerging technology, and law misapplications.
In one instance, the DOJ claimed Storm insinuated that software misuse is entirely immune to prosecution and that cryptocurrency is naturally beyond law enforcement's control. Tuminelli vehemently rejects these allegations, stating they grossly misconstrue Storm’s original defense motion and border on intentional deception.
Tuminelli further critiques the prosecutors for misconceiving the functioning of unalterable smart contract protocols. This is evident as they accuse co-founders Storm and Roman Semenov of abetting illegal activities on Tornado Cash while knowingly choosing not to intervene.
The DeFi Education Fund supported Storm by providing an amicus brief arguing the International Emergency Economic Powers Act (IEEPA) -- empowering the president to regulate against unusual and extraordinary threats -- should not penalize software developers who never directly engaged with or lobbied for transactions with an entity under sanctions.
Simultaneously, debate surrounds the implications of a specific section from the 111-page prosecutors’ retort. A controversial argument made by the DOJ could potentially impact cryptocurrency and Internet freedom. The DOJ claims under U.S law, transferring money does not necessitate control over the transferred funds and encompasses all means of moving funds on behalf of the public.
Commentators speculate this wide-ranging interpretation could trigger risky precedents for internet freedom, as any organization broadcasting financial activities, including internet service providers, could be compelled to adopt KYC regulations.
Considering the ensuing debates, this case has been identified as potentially landmark in cryptocurrency court proceedings, raising questions about liability concerning smart contracts and the interfaces for accessing them.
Crypto-focused lawyer Gabriel Shapiro, however, is unconcerned, claiming this is not likely to render decentralized application operators as money transmitters. He looks at the case more from the perspective of relayers and its relation to the cryptocurrency mixer’s Tornado Cash (TORN) token.
The anticipated trial for Storm is scheduled for September. Semenov remains elusive.
Published At
4/29/2024 6:04:37 AM
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