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Tornado Cash Developer Roman Storm to Stand Trial in December After Motion Dismissal

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A federal judge’s decision could have far-reaching consequences for cryptocurrency developers and privacy-focused technologies.


Tornado Cash Developer Roman Storm to Stand Trial in December After Motion Dismissal

Roman Storm, co-founder and developer of the controversial cryptocurrency mixer Tornado Cash, is set to face a high-stakes trial in December after a federal judge denied his motion to dismiss three criminal charges. The ruling, issued by Judge Katherine Polk Failla on September 26, marks a critical moment not only for Storm but also for the broader world of cryptocurrency development and privacy technologies.


Storm is charged with conspiracy to commit money laundering, conspiracy to violate sanctions, and conspiracy to operate an unlicensed money-transmitting business, all linked to his role in Tornado Cash. This platform, designed to enhance the privacy of cryptocurrency transactions, has been at the center of debates around financial privacy and its intersection with illegal activities like money laundering.


In her ruling, Judge Failla rejected Storm’s arguments that his involvement was purely as a software developer, claiming that Tornado Cash was not merely an open-source project. "I cannot simply accept Mr. Storm’s narrative that he is being prosecuted merely for writing code," Failla stated during a telephone conference, underscoring the complexity of the case. She also pointed to allegations that the platform was not an "altruistic venture," citing accusations that Tornado Cash had received nearly $1 million in venture capital funding with profit-sharing expectations.


Storm, who pleaded not guilty, argued that he and his co-founders created Tornado Cash to provide financial privacy for legitimate cryptocurrency users. However, prosecutors claim that the platform knowingly facilitated money laundering operations, allowing Storm to “reap millions of dollars in profits” from illicit transactions.


The case has drawn significant attention from the cryptocurrency community, with concerns over the legal precedent it could set for software developers. Jake Chervinsky, chief legal officer at crypto venture firm Variant, voiced his disapproval of the ruling on social media platform X (formerly Twitter). Chervinsky called the decision "an assault on the freedom of software developers everywhere," adding that he expects it "to go down on appeal, if that’s what it takes."


If convicted on all charges, Roman Storm faces up to 45 years in prison, a staggering sentence that has left many in the tech world alarmed. His trial is scheduled to begin on December 2, 2023, and is expected to be closely watched, as it could redefine the boundaries of legal liability for cryptocurrency developers and raise questions about the role of open-source software in criminal activities.


The Tornado Cash saga has already seen legal developments outside the U.S. In May, Alexey Pertsev, another co-founder of Tornado Cash, was convicted in the Netherlands for laundering $1.2 billion through the platform. Pertsev was sentenced to over five years in prison and is currently appealing his conviction. Meanwhile, Roman Semenov, the third co-founder charged alongside Storm, remains at large, and his whereabouts are unknown.


As Storm’s December trial approaches, the outcome could set a pivotal legal precedent in the ever-evolving landscape of cryptocurrency regulation. Whether Storm’s defense will succeed in painting Tornado Cash as a tool for privacy or whether the court will side with prosecutors’ claims of criminal intent remains to be seen. What is clear, however, is that this case has the potential to reshape the future of decentralized finance and privacy-focused technologies.


photo source / Blockonome

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Blockonome's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.

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