DOJ Rejects Tornado Cash Developer Roman Storm's Latest Dismissal Motion
The Department of Justice rejected Tornado Cash co-founder Roman Storm's motion to dismiss criminal charges based on a recent Supreme Court ruling involving internet service provider Cox. In a three-page letter to Judge Katherine Polk Failla, prosecutors argued the Cox copyright case is inapposite because Storm personally knew about criminal activity on Tornado Cash and failed to intervene, while Cox actively discouraged misconduct. Storm was convicted last summer of operating an illegal money transmitter and faces retrial on two additional charges of conspiracy to commit money laundering and sanctions evasion. The prosecution continues despite Trump administration pledges to stop targeting crypto privacy developers and its pro-crypto agenda.
DOJ Rejection of Storm's Supreme Court Dismissal Argument
▪The Department of Justice stated that Roman Storm's conduct is not comparable to the conduct at issue in the Cox case.
▪The Department of Justice stated that a civil copyright case has no relevance to Roman Storm's criminal prosecution.
▪Federal prosecutors urged federal judge Katherine Polk Failla to disregard a recent Supreme Court ruling in Roman Storm's case.
▪The Department of Justice rejected Roman Storm's argument that a recent Supreme Court ruling should lead to his case's dismissal on Tuesday.
▪U.S. attorneys for the Southern District of New York sent a three-page letter rejecting the argument that the Cox decision should have bearing on Roman Storm's case.
Comparison Between Cox Copyright Case and Tornado Cash Prosecution
▪The Trump Department of Justice alleged there is no evidence a crypto privacy service like Tornado Cash was capable of substantial or commercially significant noncriminal uses.
▪The Supreme Court unanimously ruled on March 25 that Cox, a major internet service provider, could not be held liable for the illegal actions of its customers in a music copyright case.
▪Roman Storm's attorneys argued the Supreme Court's Cox ruling had direct bearing on their case in a letter to Judge Failla sent last week.
▪The Trump administration backed Cox's position that the internet giant should not be considered supportive of the illegal actions of some of its users.
▪The Department of Justice argued that Roman Storm was personally aware of the misconduct of some Tornado Cash users and did not intervene to stop it.
Tensions Between Trump Administration's Pro-Crypto Stance and Developer Prosecutions
▪Roman Storm was arrested and charged in 2023 for operating Tornado Cash, a coin mixing service that allowed Ethereum users to keep their transactions private.
▪The Department of Justice's push to retry Roman Storm is notable given the Trump administration's aggressively pro-crypto agenda.
▪The Trump Department of Justice filed last month to try Roman Storm again for conspiracy to commit money laundering and conspiracy to commit sanctions evasion.
▪Prosecutors alleged Roman Storm was aware that bad actors were using Tornado Cash to launder money even though the software ran autonomously without the developer's direct involvement.
▪A Manhattan jury found Roman Storm guilty of operating an illegal money transmitter last summer but failed to reach verdicts on two other money laundering and sanctions evasion charges.
Perspective of Roman Storm's defense team
▪Roman Storm's defense team contends the Cox decision supports dismissing charges against the Tornado Cash developer.
Perspective of Department of Justice prosecutors
▪The Department of Justice maintains Roman Storm's personal knowledge of criminal activity distinguishes him from passive service providers.
▪The Department of Justice contends Roman Storm's criminal prosecution is fundamentally different from civil copyright liability cases.
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