Tornado Cash Co-Founder Seeks Dismissal of Charges

The legal team for Roman Storm, co-founder of the cryptocurrency mixer Tornado Cash, has filed a motion to dismiss charges against him, which include conspiracy to launder money, operating without a license, and violating the IEEPA.

The defense also invoked the First Amendment to the U.S. Constitution, arguing that writing code can be considered an exercise of free speech rights. 

“This prosecution is essentially an unprecedented attempt to criminalize software development, which Storm and his colleagues had the right to pursue under the First Amendment. There is no evidence, nor can there be, that Storm conspired with wrongdoers who later chose to use the software for illegal purposes,” the document states.

The defense noted that under the law, Storm cannot be held accountable for the actions of those who used the cryptocurrency mixer. The lawyers also emphasized that users did not relinquish control over their assets nor paid a fee to Tornado Cash.

In August 2022, the OFAC blacklisted Tornado Cash for its involvement in laundering over $7 billion in illicit funds. That same month, Dutch authorities arrested the mixer developer Alexey Pertsev. In April 2023, his detention was changed to house arrest.

In August 2023, the U.S. Department of Justice charged Storm and another Tornado Cash co-founder, Roman Semenov, with money laundering and sanctions violations. Semenov remained free but was added to the OFAC sanctions list. Storm was detained but later released on bail. In September, he pleaded not guilty.

In March 2024, Dutch authorities charged Pertsev with laundering $1.2 billion in illegal funds through the cryptocurrency mixer. A 64-month prison sentence was requested for him. The verdict is scheduled to be announced on May 14.