• 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

2 years 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

Bitcoin's Price Action and Key Resistance Levels Under Scrutiny

chest

Bitcoin's recent price movements are under close scrutiny as it trades between $79,000 and $80,000, a critical resistance area. Analysts are emphasizing the importance of the $80,300 level, which could trigger selling pressure if not held as support.

user avatarEmily Carter

South Korean Government Confirms Crypto Tax Implementation

chest

The South Korean government has confirmed a 20% tax on crypto profits starting January 2027, affecting many investors.

user avatarTomas Novak

Market Dynamics Indicate Potential for Ethereum Price Recovery

chest

Market dynamics suggest that Ethereum may recover in price if it can withstand current selling pressure.

user avatarKaterina Papadopoulou

South Korea's Major Crypto Exchanges Collaborate with Tax Authorities

chest

The five largest crypto exchanges in South Korea are collaborating with the National Tax Service to prepare for a new tax policy set to be implemented in January 2027.

user avatarMaya Lundqvist

Crypto Firms Shift to Chainlink After Chaos Labs Hacking Attempt

chest

Several crypto firms are migrating to Chainlink's oracle infrastructure following a hacking attempt on Chaos Labs.

user avatarLeo van der Veen

SEC Chair Paul Atkins Calls for Enhanced Regulatory Guidance for Onchain Markets

chest

SEC Chair Paul Atkins emphasizes the need for clearer regulatory frameworks for onchain trading systems and related activities.

user avatarLi Weicheng

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.