The DOJ opposes Roman Semenov’s Motion to Dismiss charges against him for conspiracy and money laundering related to Tornado Cash. They argue that disputed facts make early-stage motions unsuitable. Tornado Cash, launched in 2019, is a crypto-mixing service with a website, user interface, smart contracts, and network of “relayers.”
The DOJ objected to the motion to dismiss conspiracy and money laundering accusations against Roman Semenov, one of Tornado Cash’s co-founders. They maintained that the defense’s submission presented contested facts that were inappropriate for early judicial evaluations.
In the Justice Department’s rebuttal, the prosecutors explained why the Tornado Cash co-founder is accountable for the alleged offenses against him. The DOJ challenged the defense’s description of Tornado Cash, pointing out that it was launched in 2019 as a mixing service. The platform encompasses a website, user interface, a collection of smart contracts, and a network of “relayers.”
The Department of Justice alleges that Roman Storm and his co-developer Roman Semenov are involved in a conspiracy to carry out money laundering, run an unauthorized money transferring business, and breach sanctions by establishing Tornado Cash – a cryptocurrency mixing platform. According to U.S. officials, groups such as North Korea’s Lazarus have reportedly utilized Tornado Cash for laundering funds.
In September 2023, I came across the news that Storm had entered a plea of not guilty to all the charges filed against him. Following his arrest, he was granted bail in the amount of $2 million. However, there are restrictions on his travel; he is prohibited from leaving certain areas of New York, New Jersey, Washington, and California.
In late March, I argued with the authorities that they did not have sufficient justification for filing the indictment against me. I made it clear that while I contributed to the design of the code, I am not responsible for how it was ultimately used.
We contend that Tornado Cash doesn’t function as a custodial mixing service and therefore doesn’t fit the description of a “financial institution.” Moreover, we maintain that Storm, the defendant in this case, lacked the ability to regulate or restrict the use of this service by entities such as Lazarus Group.
Damian Williams’ team of prosecutors contended in the filing that Semenov was responsible for managing the cryptocurrency mixer, and they charged him with creating tools to help criminals maintain anonymity. They also censured Tornado Cash’s founders for insufficient efforts to exclude sanctioned addresses from their platform.
This comes as the U.S. government continues its crackdown on crypto-mixing services.
On the 24th of April, the founders of Samourai Wallet, a cryptocurrency blending service, were taken into custody. The company’s CEO, Keonne Rodriguez, and CTO, William Hill, faced charges for conspiring to launder money and for operating an unlicensed money transmitting business. These offenses carry potential sentences of up to 20 years and five years in prison, respectively.
According to Ki Young Ju, the CEO of CryptoQuant, the use of crypto mixing services is not an inherent crime, despite the recent arrest of the founders of Samourai Wallet.
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2024-04-28 10:32