Tornado Cash co-founder Roman Storm is set to face trial on money laundering charges after a U.S. federal judge denied his motion to dismiss the case. During a telephonic conference on September 26, District Judge Katherine Polk Failla ruled that Storm's arguments were insufficient to warrant dismissal of the charges brought by the U.S. Department of Justice.
In August, federal prosecutors indicted Storm, alleging that he knowingly facilitated the crypto mixer’s involvement in laundering over $1 billion in illicit funds. Storm and co-founder Roman Semenov are charged with conspiracy to commit money laundering, conspiracy to violate the International Economic Emergency Powers Act, and operating an unlicensed money transmitting business.
Storm's defense argued that the First Amendment protected his role in developing Tornado Cash software. However, Judge Failla stated that the functional capability of software does not qualify as speech under the First Amendment. She emphasized that the government's actions to combat money laundering and sanctions evasion are unrelated to free speech suppression.
Judge Failla expressed that she did not view Tornado Cash as significantly different from other financial services. This ruling has raised concerns among legal experts, with Jake Chervinsky, Chief Legal Officer at Variant Fund, calling it an assault on software developers' freedom and a potential travesty of justice.
Tornado Cash is a cryptocurrency mixer designed to enhance privacy for cryptocurrency transactions by obfuscating the origins and destinations of funds. Notably, North Korea-backed cybercriminal group Lazarus has reportedly used Tornado Cash for laundering purposes.
Storm’s trial is slated to commence on December 2 in New York and is expected to last for two weeks. Roman Semenov, the other co-founder, remains at large.
