• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Roman Storm to Face Trial on Charges of Money Laundering and Sanctions Evasion

user avatar

by Giorgi Kostiuk

a year ago


Roman Storm, co-founder of the crypto mixer Tornado Cash, is poised for trial after the court denied his request to dismiss allegations regarding his role in the platform.

The Court Insists on Charges

Storm was arrested in Auburn, Washington, and subsequently released on a $2 million bail. His defense team aims to argue for a dismissal of the charges by claiming Storm had no direct role in how the platform was utilized. They contend that Tornado Cash is self-operating software, and Storm lost control after its deployment on the Ethereum blockchain in 2019. However, Judge Katherine Polk Failla ruled that control is not a necessary condition to prove guilt.

The Crypto Community Reacts

The crypto community has responded strongly to the recent ruling. Amanda Tuminelli, legal head of the DeFi Education Fund, argued that developers should not be held responsible for illegal activities committed by third parties misusing open-source software. Notable crypto lawyer Jake Chervinsky criticized the decision, stating, 'This ruling is an attack on the freedom of software developers.'

Challenges of Tornado Cash

The trial date of December 2 is seen as a critical moment regarding the legal treatment of open-source developers in the crypto industry. Tornado Cash, designed to enhance privacy in cryptocurrency transactions, has become controversial due to allegations of its use by hackers associated with North Korea’s Lazarus Group. The platform faced sanctions from the U.S. Treasury Department in October 2022, resulting in a 68% drop in total entries by January 2023.

The U.S. Department of Justice claims Tornado Cash received around $1 million in investments from a venture capital firm, using those funds with expectations of sharing profits. Storm’s ongoing case is set to begin in New York in December, with evidence suggesting that the platform’s co-founders extracted millions in cash from TORN assets, indicating Tornado Cash did not operate purely altruistically. The case is poised to ignite significant discussions regarding the legal responsibilities of open-source software.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Steve Davis Under Scrutiny Amid Procore's AI Strategy

chest

Steve Davis, president of product and technology at Procore Technologies, is under scrutiny due to his past leadership at Babylon Health, which faced challenges leading to its collapse. Stakeholders are watching how this may impact Procore's AI strategy.

user avatarLi Weicheng

Ajei Gopal Takes the Helm as CEO of Procore Technologies

chest

Procore Technologies has appointed Ajei Gopal as its new CEO to guide the company through operational discipline and growth amidst rising investor scrutiny.

user avatarLeo van der Veen

Ethereum Scaling Transitions to Production-Grade Infrastructure

chest

The Ethereum ecosystem has evolved from theoretical scaling solutions to actual production-grade infrastructure with the implementation of Optimistic Rollups, ZK Rollups, and major Layer 1 upgrades.

user avatarKaterina Papadopoulou

DAWN's Funding to Drive Network Expansion and Technological Advancements

chest

The newly acquired $13 million will fuel two primary expansion initiatives for the Solana wireless protocol, significantly expanding its network coverage across the United States and supporting international expansion.

user avatarAisha Farooq

The Impact of Market Cycles on Media Credibility

chest

The cyclical nature of market conditions significantly impacts the credibility and investigative capacity of crypto media, particularly during bear markets.

user avatarBayarjavkhlan Ganbaatar

The Need for Robust Research in Crypto

chest

There is a pressing need for durable analytical content in the crypto space to provide actionable insights and prevent future crises.

user avatarMohamed Farouk

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.