Roman Storm, Tornado Cash Co-Founder, Faces Trial After Ruling

Roman Storm, a co-founder of Tornado Cash, is set to stand trial on money laundering charges on December 2 in New York.

This follows the decision by U.S. District Judge Katherine Polk Failla, who dismissed his motion to drop the three charges filed against him by the U.S. Department of Justice (DOJ).

Judge Dismisses Roman Storm’s Defense

In a remote hearing that took place on September 26, Judge Failla denied Storm’s claims, which stated that his role in Tornado Cash was strictly limited to coding the software and that he had no oversight of its usage after its release.

Amanda Tuminelli, Chief Legal Officer of the DeFi Education Fund, provided updates from the hearing on X, revealing that “the court found Storm’s arguments for dismissal to be legally insufficient, pushing factual matters to be examined during the trial.”

She noted that the judge ruled against his defense on the grounds that proof of control over illegal activities was unnecessary for the charges to be applied. Furthermore, Failla underscored that the prosecution needed to demonstrate that the Tornado Cash developer was aware he was handling illegal proceeds, rather than showing that he colluded with others to engage in illegal undertakings.

The court argued that Storm’s mindset and his awareness of possible criminal activities should be determined by a jury. Judge Failla also pointed out that the relevant laws had clearly indicated to him that his actions could be deemed criminal, regardless of the unique nature of the technology employed.

Jake Chervinsky Critiques Court Ruling

In related developments, Jake Chervinsky, Chief Legal Officer at Variant Fund, expressed his apprehension on X, labeling the ruling as “an attack on the liberties of software developers everywhere.” He characterized the verdict as “a distortion of law and a mockery of justice.”

Storm along with his Tornado Cash colleague Roman Semenov is charged with three significant offenses: conspiracy to engage in money laundering, conspiracy to run an unlicensed money-transmitting operation, and conspiracy to infringe upon the International Emergency Economic Powers Act (IEEPA).

In August 2023, the DOJ accused the crypto mixing service of knowingly enabling illicit transactions, including those associated with the North Korean Lazarus Group.

Storm, who maintains his innocence regarding all charges, is now preparing for a trial in December that is anticipated to span two weeks. On the other hand, Semenov remains unaccounted for.

Tuminelli concluded by mentioning that while the judge did not provide a formal written ruling, a “bottom line” determination is likely to be posted on the docket, presumably to prevent the establishment of a precedent for future courts to utilize.