Tornado Cash’s pleads dismissal of all money laundering charges

Crypto mixer mania: Roman Storm, co-founder of the cryptocurrency mixer Tornado Cash, has taken legal action by filing a motion to dismiss all three charges against him. According to media reports, Storm and his legal team argue that the accusations of operating a money laundering business and violating the International Emergency Economic Powers Act are unfounded.

In a filing to the United States District Court for the Southern District of New York on March 29, Storm's lawyers asserted that Storm cannot be held responsible for conspiring to launder funds. They underlined that the Tornado Cash was developed and publicly accessible before it was allegedly used by sanctioned entities, making it difficult for Storm to prevent such usage.

The charges against Storm revolve around allegations that Tornado Cash facilitated the North Korean Lazarus Group's efforts to bypass US sanctions, potentially enabling the funding of North Korea's nuclear program.

Storm's legal team further argued that Tornado Cash did not function as a money-transmitting business since it did not charge fees for fund transmission, and users maintained complete control over their cryptocurrencies. They maintained that Storm's intention was to create software solutions to improve financial privacy for law-abiding cryptocurrency users.

Previously, in September 2023, Storm pleaded not guilty to all charges and was released on a $2 million bond, with travel restrictions limited to specific regions of New York, New Jersey, Washington, and California.

The legal battle unfolds amid a broader crackdown by the US government on crypto-mixing services. Recently, the founder of Bitcoin Fog, a leading crypto-mixing service, was convicted of money laundering and related charges.

Despite regulatory scrutiny, crypto mixers remain valued within the crypto community for their ability to improve privacy and confidentiality in transactions. At one point, the Arbitrum DAO had considered allocating funds to support Storm's legal defence, but the proposal has since been withdrawn, with reasons for its removal undisclosed.