Michaela Alvez
Roman Storm, co-founder of the privacy-focused cryptocurrency platform Tornado Cash, has spoken out about the ongoing legal challenges he faces following the lifting of sanctions on the platform.
Storm, who is currently facing charges of conspiracy to commit money laundering and operating an unlicensed money-transmitting business, expressed concern over the broader implications of the case.
In a post on X, Storm argued that his prosecution stems from creating open-source code designed to facilitate private, non-custodial cryptocurrency transactions. He warned that if his case sets a legal precedent, it could have significant implications for software developers and their ability to innovate without fear of criminal liability.
“This case has already had a chilling effect on developers working on software tools. Recently, a developer filed a lawsuit against the DOJ, seeking relief because my case has made them fearful of releasing new software,” Storm wrote.
Storm’s case stems from Tornado Cash’s operation as a decentralized cryptocurrency mixing service, which the U.S. government alleges facilitated unlawful activities, including money laundering and sanctions evasion.
The co-founder asserted that Tornado Cash is merely a tool, similar to other software platforms. He argued that developers should not be held criminally liable for the misuse of their creations by others.
“This prosecution threatens to criminalize software development itself,” said Keri Axel of Waymaker LLP, Storm’s legal counsel.
Additionally, Storm noted a significant legal challenge facing the cryptocurrency industry: the U.S. Department of Justice’s (DOJ) interpretation of Section 1960 of the federal criminal code.
Section 1960 is a federal statute designed to penalize businesses that operate as unlicensed “money transmitting businesses.” In the cryptocurrency sector, this law applies to platforms or services that manage user funds without obtaining the necessary regulatory approvals.
The DOJ’s interpretation places legal liability on Tornado Cash developers like Storm, as the DOJ contends that by creating and maintaining the platform’s open-source code, they effectively enabled unlicensed money transmission.
Read More
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- Tornado Cash Available Soon? Court Ruling Overturns Sanctions
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
