- The US DoJ has opposed Roman Storm’s bid to dismiss criminal charges against him
- The DoJ argued that Storm’s defense introduced disputed facts that should be discussed in court
- Storm is one of three Tornado Cash developers facing charges of money laundering, operating an unlicensed transmitter, and violating sanctions laws.
The US Department of Justice (DoJ) last week countered Tornado Cash co-founder Roman Storm’s attempt to dismiss criminal charges leveled against him. The DoJ contended that the motion filed by Storm’s defense introduced disputed facts better suited for jury deliberation rather than early-stage dismissal arguments. Storm, along with fellow developer Roman Semenov, faces charges of conspiring to commit money laundering, operating an unlicensed money transmitter, and violating sanctions laws by creating and running the mixing service.
Storm Alleges Case is “Fatally Flawed”
Storm was indicted last August along with other Tornado Cash developers Roman Semenov and Alexey Pertsev, with the charges encompassing conspiracy to commit money laundering, sanctions violations, and operating an unlicensed money-transmitting business.
Storm pleaded not guilty at a New York District Court the month after his arrest and was released on a $2 million bond with his passport seized. In April, his legal team argued that the indictment is “fatally flawed” and violates First Amendment rights, contending that writing code, such as that used in Tornado Cash, constitutes protected speech, as was initially seen in the Daniel Bernstein case.
The motion also asserted that Storm cannot be held responsible for any illicit use of the software as there is no evidence he conspired with bad actors, while they also challenged the characterization of Tornado Cash as a money-transmitting business, highlighting that users retained control of their coins and did not pay fees to Tornado Cash.
They argue that Storm and his colleagues relinquished control over Tornado’s smart contracts in 2020, months before the alleged criminal conduct.
DoJ Says Storm and Co. Had Control
The DoJ’s filing challenged the defense’s characterization of Tornado Cash, citing its 2019 announcement as a mixer and its comprehensive service structure, which includes a website, user interface, smart contracts, and a network of ‘relayers.’ The filing emphasized that Storm’s personal assertions about the service’s operation and his intent did not warrant dismissal.
Moreover, the DoJ contested Storm’s claims regarding the functionality of the Tornado Cash interface and users’ control over transactions, providing screenshots as evidence. The filing argued that Storm and his associates retained control over the mixer, particularly during the period covered by the DoJ’s charges (2019 to August 2022).
US attorney Damian Williams stated that Storm and Semenov “knew that they were helping hackers and fraudsters conceal the fruits of their crimes,” which makes the potential punishment all the more severe if they were found guilty.
Storm is set to go on trial this September, while Semenov remains a wanted man.
