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Prominent pro-crypto organizations have filed amicus briefs in support of Tornado Cash co-founder Roman Storm.
Storm was arrested in August and charged with three counts related to his role in the Ethereum privacy protocol. Three United States-based cryptocurrency advocacy organizations have filed amicus briefs in support of a motion to dismiss the charges against Storm.
Storm’s Motion To Dismiss Charges
Last week, Storm requested to withdraw the charges against him. He argued that the government’s argument was flawed in its portrayal of Tornado Cash’s services and the different aspects of blockchain technology. The briefs, although written and filed separately, make largely similar arguments against the government’s characterization of the case in its indictment.
The Charges Of Governments
The government charged Semenov and Storm for operating an unlicensed money transmitting business through Tornado Cash. However, The Blockchain Association argues that FinCEN’s own definitions contradict this claim. According to their brief, intermediaries that do not exercise independent control over the assets cannot be held liable for money transmission.
The provided document elaborates extensively on the functioning of Tornado Cash without granting its creators any authority over the possessions of its users. Furthermore, it warns that if the government maintains its position that Tornado Cash qualifies as a money-transmitting enterprise, then the developers may find it impossible to comply with the Bank Secrecy Act.
Two briefs have been presented in defence of Ethereum developer Virgil Griffith, who is facing charges of conspiracy to violate the International Economic Emergency Powers Act (IEEPA). The case could set a dangerous precedent for software developers as the briefs argue against the charges, stating they should not hold up. Government prosecutors have yet to respond to Storm’s motion to dismiss the charges against him.
The Advocacy Groups In Action
In the filings, the Blockchain Association, Coin Center, and DeFi Education Fund argued that Tornado Cash did not have control over the funds or messages. These were the messages and funds users sent through the cryptocurrency mixer.
The advocacy groups separately claimed that the three felony counts Roman faces should be dismissed citing First Amendment issues regarding the Tornado Cash co-founder allegedly violating sanctions.
Moreover, the government misunderstood the basic relationship between smart contract protocols and their developers regarding allegations of money laundering.
Blockchain Association Head of Legal Marisa Coppel said some things about the whole scenario. She said that adoption of the government’s legal theory would not only have adverse repercussions for the digital asset industry but also raise serious concerns regarding fintech more generally.
She said that people should urge the court to hold the government up to its burden and dismiss the unfounded charges. This will be safeguarding both the defendants’ rights and the integrity of the burgeoning digital asset sector
Summary
Storm was arrested in August for his involvement in the Ethereum privacy protocol. He recently requested to withdraw the charges against him, arguing that the government’s argument was flawed. The Blockchain Association, Coin Center, and DeFi Education Fund supported Storm, stating that Tornado Cash did not have control over the funds or messages.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of monetary loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
