Roman Storm, co-founder of cryptocurrency mixer Tornado Cash, is facing charges related to allegations that the platform facilitated the North Korean Lazarus Group in evading U.S. sanctions. His lawyers have submitted a motion to dismiss the charges, arguing that Tornado Cash was developed and publicly available before it was used by sanctioned entities. They claim that Storm did not operate a money laundering business and did not violate any laws. Storm has pleaded not guilty and was released on bond, with travel restrictions in place restricting him to certain regions of the United States.
The charges against Storm revolve around accusations that Tornado Cash enabled the Lazarus Group to finance its nuclear program by evading sanctions. His legal team argues that Tornado Cash did not operate as a money-transmitting business as there were no fees charged for transactions, and users had full control over their cryptocurrencies. They assert that Storm’s intention was to provide financial privacy solutions for law-abiding cryptocurrency users. The ongoing crackdown on crypto-mixing services by the U.S. government has seen the conviction of the founder of Bitcoin Fog for money laundering.
Storm had sought support from privacy advocates in anticipation of his upcoming trial, with the Arbitrum DAO proposing to allocate $1.3 million worth of tokens to assist him. However, the proposal was later removed without explanation. A crowdfunding campaign on GoFundMe to collect legal fees for Storm was canceled due to a breach of the platform’s terms of service. The U.S. Treasury has added Tornado Cash to its Specially Designated Nationals list, preventing Americans from using the mixing service. Storm’s legal battle is expected to have implications for the Web3 community and privacy advocates.
The Tornado Cash platform was used by hacking groups that were subsequently sanctioned by the U.S. Department of Treasury, leading to the charges against Storm. His lawyers maintain that he had limited control over preventing sanctioned entities from using the platform when the alleged misconduct occurred. They argue that the charges are fatally flawed and should be dismissed. Amidst the ongoing crackdown on crypto-mixing services, Storm’s case is considered significant as it could set a precedent for future legal battles related to software development and privacy. Storm’s legal team is preparing a strong defense for his upcoming trial, which is expected to impact the cryptocurrency community and software developers.
Storm continues to maintain his innocence and is backed by a legal team that argues he did not operate a money laundering business, nor did he violate any laws. The charges against him are based on the alleged facilitation of North Korean sanctions evasion, which his lawyers claim was unintended and beyond his control. The support he previously sought from privacy advocates and the crypto community indicates the significance of his legal battle in the broader context of cryptocurrency regulation and privacy concerns. With the restrictions placed on his travel and the ban on Tornado Cash by the U.S. Treasury, Storm’s case highlights the challenges faced by developers in navigating the evolving legal landscape surrounding cryptocurrency technologies.
