DOJ Disputes Roman Storm’s Characterization of Tornado Cash Operations in New Filing

As a seasoned crypto investor with a keen interest in the legal aspects of the industry, I find this development concerning. The ongoing case against Tornado Cash developer Roman Storm and his co-accused Roman Semenov highlights the increasing scrutiny being placed on privacy tools and their role in facilitating illicit activities.

As a crypto investor, I’ve been closely following the latest developments with Tornado Cash and its developer Roman Storm. The US Department of Justice denied Storm’s attempt to dismiss criminal charges against him on Friday. According to their response, the defense filing contained debatable facts that need to be evaluated by a jury during trial, rather than points that could be decided through an initial motion.

The Department of Justice (DOJ) accused me, along with Roman Semenov, of conspiring to carry out money laundering schemes, running an unlicensed money transmitting business, and violating sanctions laws. Specifically, we allegedly created and managed Tornado Cash, a crypto mixing service intended to obscure transaction origins. Authorities in the U.S. claim that North Korea’s Lazarus Group and other nefarious entities have laundered funds through this platform.

In late March, lawyers representing the accused party filed a motion to dismiss the indictment. They argued that Tornado Cash, the mixing service in question, does not meet the criteria of a custodial mixer and doesn’t fall under the definition of a “financial institution.” Furthermore, they maintained that the accused individual did not possess the ability to control or prevent the usage of this service by groups like Lazarus.

Arguing for the defense, it was pointed out that writing software for a project is fundamentally different from running a money laundering operation.

In our filing made public on Friday, we, the Department of Justice (DOJ), contested the defense’s portrayal of Tornado Cash. According to our findings from 2019, Tornado Cash was introduced as a mixing service. However, their entire offering encompasses more than just a website and user interface; it also involves a network of “relayers” and a set of interconnected smart contracts.

The defendant is unable to dismiss the Indictment by merely presenting factual arguments about how the Tornado Cash service functioned from his perspective, which conflicts with the prosecution’s view, and by offering a self-interested account of his intentions during specific actions. (Friday’s filing stated)

The Justice Department challenged Storm’s claims regarding the functionality of Tornado Cash’s interface and the degree of influence individual users held over transactions, presenting visual evidence in the court filing. Furthermore, the document contends that Storm and his fellow founders exercised authority over the mixer during the relevant timeframe (from 2019 to August 2022).

The document repeatedly mentions the evidence that the Department of Justice intends to present in court regarding the creation and operation of Tornado Cash by Storm and its other founders. It covers aspects such as their building process, the usage of Tornado Cash by users, and additional relevant details.

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