Tornado Cash Co-Founder Seeks to Drop Charges
Date: 2024-12-20 Author: Gabriel Deangelo Categories: BUSINESS
The U.S. Court of Appeals for the Fifth Circuit ruled in November that the Office of Foreign Assets Control (OFAC) exceeded its authority by imposing sanctions on Tornado Cash in 2022. Storm's lawyers argue that the ruling highlights the inadequacy of all charges brought against him.
The lawyers note that the appeals court ruling affects the charges of violating the International Emergency Economic Powers Act. The court recognized that Tornado Cash smart contracts are not anyone's property and cannot be blocked. Smart contracts are open to use by anyone, including hackers from North Korea, and their creators cannot control or change their operation, the lawyers emphasize.
As for the charges of operating an unlicensed money transmitter and asset launderer, the defense also cites a court ruling that Tornado Cash is neither a business, nor a legal entity, nor a financial institution. The protocol was in place since May 2020, several months before the alleged conspiracy. On this basis, the lawyers are arguing for the case to be dismissed.
Recall that in August 2023, the US Department of Justice brought charges against Storm and his colleague Roman Semenov. Storm was arrested, while Semenov remained free but sanctioned.
Meanwhile, in the Netherlands, in May 2024, a court sentenced Tornado Cash developer Alexey Pertsev to 64 months in prison for laundering $1.2 billion. Pertsev continues to seek a review of his case and was denied bail in July, and his pretrial detention was extended in November.
