The US Department of Justice has rejected Tornado Cash developer Roman Storm’s motion to dismiss criminal charges, stating that disputed facts should be weighed by a jury rather than resolved in an early-stage motion. Storm, along with fellow developer Roman Semenov, was charged with conspiracy to commit money laundering, operate an unlicensed money transmitter, and violate sanctions laws through the creation and operation of Tornado Cash. Authorities allege that Tornado Cash has been utilized by criminal entities, including North Korea’s Lazarus Group, for money laundering purposes.
In their motion to dismiss the indictment, Storm’s attorneys argued that Tornado Cash is not a custodial mixing service and does not meet the definition of a financial institution. They also claimed that Storm had no control over the service and could not prevent entities like the Lazarus Group from using it. The defense argued that merely developing the code for the project does not equate to operating a money laundering entity. However, the DOJ disputed the defense’s characterization of Tornado Cash, stating that the service was launched as a mixer and that Storm and his co-founders maintained control over the mixer during the period covered by the charging document.
Storm is scheduled to stand trial in September, while Semenov remains at large. Earlier this year, Storm sought support from privacy advocates in anticipation of his upcoming criminal trial. He stated that his legal team was preparing a strong defense for his September 2024 trial, emphasizing the potential precedent that this case could set for years to come. The Arbitrum DAO submitted a proposal to allocate approximately $1.3 million worth of tokens from the community wallet to assist Storm, but the proposal was later removed without explanation. A crowdfunding campaign on GoFundMe intended to collect legal fees for Storm and Pertsev was canceled due to a breach of the platform’s terms of service.
The DOJ’s recent filing included screenshots and evidence intended to be introduced during the trial, detailing how Storm and other Tornado Cash founders built and operated the system. The filing disputed Storm’s assertions regarding the functionality of the Tornado Cash interface and the level of control individual users had over the deposit and withdrawal process. The US Treasury has added Tornado Cash to its Specially Designated Nationals list, effectively banning Americans from using this mixer. Storm has been seeking support from various sources, including the arbitration DAO and a crowdfunding campaign, to cover legal fees and prepare for his upcoming trial.
The defense’s motion to dismiss the indictment was rejected by the DOJ, who argued that contested facts should be resolved by a jury. The authorities allege that Tornado Cash was used by criminal entities for money laundering purposes. Storm’s defense argued that he had no control over the service and that developing the code did not equate to operating a money laundering entity. The DOJ disputed the defense’s characterization of Tornado Cash and provided evidence that Storm and his co-founders maintained control over the mixer. Storm is set to stand trial in September, while Semenov remains at large. Various support efforts, including proposals from the Arbitrum DAO and a crowdfunding campaign, have aimed to assist Storm with legal fees for his upcoming trial.
