In recent developments, three prominent cryptocurrency advocacy groups have publicly announced their support for Roman Storm, the developer of the crypto mixer Tornado Cash, who is currently facing allegations from the US Department of Justice (DOJ). On April 5th, the Blockchain Association and Coin Center DeFi Education Fund both filed amicus briefs in support of Storm’s petition to dismiss the charges against him.
Storm, an American citizen and one of the architects behind the platform, was charged alongside Roman Semenov, who is currently missing. Additionally, Alexey Pertsev, a co-founder of the crypto mixer, is facing trial in the Netherlands. Storm was arrested by US authorities for his involvement with Tornado Cash and accused of operating an illegal money transfer business and conspiring to commit money laundering.
Disputing Tornado Cash’s Classification as a Money Transmitter
The Blockchain Association criticised the DOJ’s accusation of Tornado Cash as an illegal money-transmitting entity. They argue that the platform lacks control over users’ assets, despite FinCEN regulations, and thus should not be classified as such. This perspective directly challenges the legal basis for one of the primary charges against Storm and his colleagues.
Similarly, the DeFi Education Fund questioned the DOJ’s application of the International Emergency Economic Powers Act (IEEPA) in Storm’s case. They contend that interpreting the IEEPA in this manner could disproportionately hold developers accountable for how others utilise their software, potentially stifling innovation in the application development sector. The Fund warned of the potentially “devastating” consequences of such an interpretation.
Challenging Money Laundering Allegations
Coin Center’s amicus brief addressed the accusation of conspiracy to commit money laundering and argued that Tornado Cash primarily serves as a privacy application rather than a conduit for illicit activities. They drew parallels between the use of cars by criminals and the use of software by individuals, asserting that developers cannot be held responsible for the actions of their users.
Furthermore, Coin Center highlighted Tornado Cash’s proactive measures to block known espionage actors from accessing its service, indicating a commitment to responsible oversight contrary to claims of developer neutrality towards platform usage.
