US Crypto Advocacy Groups Rally for Dismissal of Charges Against Tornado Cash Co-founder
Summary:
Three US-based cryptocurrency advocacy organizations, including the Blockchain Association, Coin Center, and DeFi Education Fund, have filed amicus briefs advocating for the dismissal of charges against Roman Storm, co-founder of Tornado Cash. The groups argue that Tornado Cash did not control the funds or messages users sent through the crypto mixer. The charges against Storm include violation of sanctions and allegations of money laundering, invoking First Amendment issues. A trial against Storm is set for September. The cases are tied to the US Treasury’s Office of Foreign Asset Control adding crypto addresses linked with Tornado Cash to its list of sanctioned entities.
Amicus briefs advocating for the dismissal of charges against Roman Storm, co-founder of Tornado Cash, have been submitted by three U.S. cryptocurrency advocacy institutions. The filings were made on April 5th in the U.S. District Court, Southern District of New York, by the Blockchain Association, Coin Center, and DeFi Education Fund. They argued that Tornado Cash didn’t control the funds or messages dispatched via the cryptocurrency mixer.
Each group independently stated that the three felony charges against Roman should be dismissed, pointing to the First Amendment issues related to the allegation of violating sanctions by the Tornado Cash co-creator and the government’s ‘misinterpretation of the basic relationship between smart contract protocols and their developers’ with respect to alleged money laundering.
Marisa Coppel, Head of Legal at Blockchain Association, asserted, "The government’s legal theory if adopted would not only have adverse impacts on the digital asset industry but also raise significant concerns about more fintech in general. We urge the court to hold the government accountable and dismiss the baseless charges to protect both the defendants’ rights and the growth of the emerging digital asset vertical.”
According to Peter Van Valkenburg, the U.S. Justice Department declared charges against Storm and fellow developer Roman Semenov in August 2023. After a plea of not guilty to all three charges, Storm is out on a $2 million bond, predominantly restricted from travel. The current location of Semenov is unclear, but Storm is scheduled for a trial in September.
In August 2022, Tornado Cash developer Alexey Pertsev was apprehended in Netherlands but was released after approximately nine months in prison. He was accused by Dutch authorities of being part of North Korean hacking groups, which supposedly used the crypto mixer to launder an estimated $1 billion in illegal funds.
The cases are tied to the inclusion of crypto addresses linked to Tornado Cash in the Specially Designated Nationals list by the U.S. Treasury’s Office of Foreign Asset Control — sanctioned entities. Following this decision, some crypto advocates initiated lawsuits against the U.S. Treasury. Nonetheless, both cases are pending appeal following the loss of summary judgment motions.
Published At
4/6/2024 1:01:03 AM
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