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Home»ADOPTION NEWS»Arrested Tornado Cash developer Roman Storm has agreed to drop ‘fatally flawed’ charges.
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Arrested Tornado Cash developer Roman Storm has agreed to drop ‘fatally flawed’ charges.

By Crypto FlexsMarch 30, 20243 Mins Read
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Arrested Tornado Cash developer Roman Storm has agreed to drop ‘fatally flawed’ charges.
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How could Roman Storm have conspired with criminals if he had relinquished control of the Tornado Cache before the crime occurred? How can Tornado Cash be considered a money transfer business if it doesn’t charge any fees? And aren’t you writing code-protected speech under the First Amendment anyway?

These are some of the issues raised by lawyers on behalf of Tornado Cash developer and co-founder Roman Storm in an effort to have the charges against him dismissed. Storm is one of two Tornado Cash co-founders indicted by federal prosecutors in the Southern District of New York last August, along with Roman Semenov, who remains at large. Another developer, Alexey Pertsev, is currently on trial in the Netherlands.

Storm could face up to 20 years in prison on charges of conspiracy to launder money and conspiracy to violate the International Economic Emergency Powers Act, and is also charged with conspiracy to operate an unlicensed money transfer business. He could face up to five years in prison.

But Storm’s lawyers argued in a new filing that the charges in the “fatally flawed” indictment should be dismissed, including its First Amendment defense that writing code could be considered free speech.

“At its core, this indictment represents an unprecedented attempt by Mr. Storm and his associates to criminalize software development over which they have a First Amendment right,” the motion reads in part. “There is no allegation that Mr. Storm colluded with miscreants who later chose to use the software for their own illicit purposes (nor could there have been). Therefore, legally, he cannot be held liable for their actions.”

The motion also took issue with certain claims in the original indictment. For example, the proposition deems Tornado Cash a “money transfer business” because users have never given up control of their coins or paid fees to Tornado Cash (some fees are paid to third-party intermediaries). I challenge the definition. The motion also raises questions about how the co-founders relinquished control of Tornado’s smart contracts in 2020, months before the alleged criminal activity occurred, and that no contact between Storm and malicious actors was ever confirmed or alleged in the indictment. It raises questions about whether a conspiracy could have occurred.

The arrest of Tornado Cash’s developer became a high-profile case in the decentralized finance community. To date, nearly $1.5 million has been raised for the legal defense fund.


Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.

© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.

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