- Roman Storm’s motion to dismiss money laundering charges was denied by a New York judge.
- Tornado Cash developer Roman Storm faces trial starting December 2 for money laundering.
- Judge denied Storm’s request for Dutch documents, stating they lacked relevance to his case.
Roman Storm, a developer linked to the cryptocurrency mixer Tornado Cash, will face trial following a judge’s decision. District Judge Katherine Polk Failla denied Storm’s motion to dismiss the charges during a telephonic hearing. Storm, along with fellow developer Roman Semenov, was indicted last year on several charges. These include conspiracy to commit money laundering and operating an unlicensed money-transmitting business.
Charges and Allegations
Prosecutors allege that Tornado Cash facilitated the laundering of over $1 billion, including funds tied to North Korea’s Lazarus Group. Tornado Cash is an Ethereum blockchain distributed system. Users may conduct anonymous and private transactions with it. Private transactions are legal, although illicit activity has been conducted using the platform. Storm has pleaded not guilty, claiming he just created the code and had no influence over its application.
Judge Failla dismissed Storm’s argument, stating that his role did not protect him from liability. This ruling places the focus on the responsibilities of developers in decentralized finance. The trial is scheduled to begin on December 2 and will last two weeks. If convicted, Storm could face up to 45 years in prison.
North Korean Hackers Move $11M in Stolen ETH to Tornado CashDefense’s Request for Dutch Documents Denied
Judge Failla also denied Storm’s request for access to documents from Dutch authorities. The defense sought materials related to Alexey Pertsev, another Tornado Cash developer. Pertsev was convicted of money laundering in the Netherlands earlier this year. He was sentenced to 64 months for facilitating $1.2 billion in laundering through Tornado Cash between 2019 and 2022.
Storm’s lawyers argued that the documents could provide important context for his defense. However, the judge rejected this, calling the request speculative and irrelevant. This decision limits Storm’s access to potential evidence that could support his case.
Developers Under Legal Scrutiny
Storm’s trial is closely monitored within the cryptocurrency industry. It highlights the legal risks faced by developers of decentralized platforms. Tornado Cash’s privacy features make it a valuable tool but also a target for misuse. The case raises questions about the line between creating technology and being responsible for its use. As the trial nears, its outcome may influence future regulations around privacy-focused blockchain tools.
