DOJ Responds to Tornado Cash Developer Roman Storm’s Defense, Claiming Money Transmission Activities

The US Department of Justice (DOJ) has denied Tornado Cash developer Roman Storm’s request to dismiss the criminal charges, stating that the defense’s submission included disputed facts that should be evaluated by a jury instead of being resolved through an early-stage motion.

Storm, along with fellow developer Roman Semenov, faces charges from the DOJ for conspiracy to commit money laundering, conspiracy to operate an unlicensed money transmitter, and conspiracy to breach sanctions laws through the development and management of Tornado Cash.

US authorities have claimed that Tornado Cash has been utilized by criminal organizations, including North Korea’s Lazarus Group, for money laundering activities.

DOJ Claims Tornado Cash Was Introduced as a Mixer

In their motion to dismiss the indictment, Storm’s legal representatives argued that Tornado Cash is not a custodial mixing service and does not fit the definition of a “financial institution.”

They also asserted that Storm lacked control over the service and could not prevent groups like Lazarus Group from using it.

The defense maintained that simply developing the code for the project does not equate to managing a money laundering operation.

However, in the DOJ’s latest filing, they challenged the defense’s depiction of Tornado Cash.

They indicated that the service was launched in 2019 as a mixer and consisted of a website, user interface, a set of smart contracts, and a network of “relayers.”

The DOJ contended that Storm cannot dismiss the indictment based on his own disputed interpretation of how the Tornado Cash service functioned or his self-serving account of his intentions.

The filing also countered Storm’s claims regarding the functionality of the Tornado Cash interface and the level of control individual users had over the deposit and withdrawal processes.

The DOJ presented screenshots and argued that Storm and his co-founders retained control over the mixer, at least during the timeframe covered by the charging document (2019 to August 2022).

The DOJ’s filing frequently referenced evidence they plan to present during the trial, including information about how Storm and other Tornado Cash founders constructed and developed the system and how users engaged with the service.

Storm is set to go to trial in September, while Semenov remains at large.

Storm Requested Support Against Money Laundering Charges

Earlier this year, Storm reached out for support from privacy advocates in preparation for his forthcoming criminal trial.

At that time, Storm indicated that his legal team was formulating a robust defense for his September 2024 trial.

“Whether you’re [a] passionate developer like me involved with Web3 or simply care about software and privacy, this legal battle will impact you. This case will establish a significant precedent for years to come,” he stated.

In response, the Arbitrum DAO proposed allocating approximately $1.3 million worth of Arbitrum (ARB) tokens from the community wallet to support Storm.

However, the proposer has since withdrawn the proposal without providing any explanation.

A crowdfunding initiative on GoFundMe, aimed at raising legal fees for Storm and Pertsev, was canceled on February 16 due to a violation of the platform’s terms of service that could expose GoFundMe, its employees, or users to potential risk or liability.

As reported, the US Treasury has placed Tornado Cash on its Specially Designated Nationals list, effectively prohibiting Americans from utilizing this mixer.

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