Tornado Cash Co-founder Roman Storm Challenges Money Laundering Allegations
Summary:
Cryptocurrency mixer Tornado Cash's co-founder, Roman Storm, is contesting all charges against him regarding money laundering and violating the International Emergency Economic Powers Act. His lawyers argue that Tornado Cash was immutable before the alleged misconduct, and was not a money-transmitting business. Storm, who has pleaded not guilty, argues that the charges are fatally flawed and should be thrown out.
Cryptocurrency mixer co-founder, Roman Storm, of Tornado Cash is challenging all three accusations leveled against him. The charges contend that he oversaw a money laundering operation and violated the International Emergency Economic Powers Act. Lawyers acting for Mr. Storm argue in a US Southern District of New York court filing on March 29th, that it is a stretch to claim he conspired to launder money. They assert that Tornado Cash had already been developed and was 'immutable' prior to any supposed wrongdoing. As a result, Storm had little power to prevent any sanctioned party from utilizing it at the time of the purported misconduct.
The charges primarily concern allegations that Tornado Cash abetted the North Korean Lazarus Group in sidestepping U.S. sanctions, potentially allowing the country's regime to finance its nuclear program. The lawyers further argue that Tornado Cash cannot be classified as a money-transmitting business, as it didn't charge a fee for transferring funds and the control over their cryptocurrency always remained with the user.
The legal representatives maintain that Mr. Storm intended to develop software solutions that would ensure financial privacy for responsible cryptocurrency users and called for the "fatally flawed" charges to be dismissed.
In September 2023, coverage by Cointelegraph reported that Storm plead not guilty to all charges and was released on a $2 million bond shortly after his arrest. His travel has been mostly restricted to specific areas in New York, New Jersey, Washington, and California.
The dispute comes at a time when US authorities are increasingly cracking down on crypto-mixing services. Bitcoin Fog founder Roman Sterlingov was recently found guilty of operating a $400 million crypto-mixing service, money laundering, and other related charges by Cointelegraph.
Despite these developments, the cryptocurrency community still holds the services provided by crypto mixers in high regard, as they offer increased privacy and confidentiality for legal, anonymous business transactions.
Arbitrum DAO had once considered providing around $1.3 million in ARB tokens to assist with Storm's legal costs, but the proposal has since been withdrawn. The rationale for this remains uncertain.
Published At
3/31/2024 3:51:53 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.