The motion to dismiss conspiracy and money laundering charges against Roman Semenov, co-founder of Tornado Cash, has been opposed by the United States Department of Justice (DOJ). The DOJ argued that the defense’s filing presented disputed facts that should be considered by a jury, rather than in early-stage motions.
In its response, the DOJ provided an analysis of why Roman Semenov should be held accountable for the alleged crimes. The DOJ disputed the defense’s characterization of Tornado Cash as a crypto mixer, stating that it was introduced in 2019 and consists of a website, user interface, smart contracts, and a network of “relayers.”
According to the DOJ, Roman Storm and Roman Semenov conspired to commit money laundering, operated an unlicensed money transmitter, and violated sanctions by creating Tornado Cash. U.S. authorities claim that entities like North Korea’s Lazarus Group used Tornado Cash for money laundering.
Roman Storm pleaded not guilty to all charges in September 2023 and was released on a $2 million bond after his arrest. He is currently restricted from traveling outside certain areas in New York, New Jersey, Washington, and California.
However, in late March, Storm’s attorneys filed a motion to dismiss the indictment, arguing that authorities did not have sufficient grounds to charge him. Semenov clarified that while he contributed to the code design, he should not be held accountable for its use.
Semenov’s legal team argued in their motion to dismiss that Tornado Cash does not function as a custodial mixing service and does not meet the criteria of a “financial institution.” They claimed that Storm had no control over the service to prevent entities like Lazarus Group from using it.
The prosecutors, led by Damian Williams, disputed these claims in their filing. They argued that Semenov was responsible for operating the crypto mixer and accused him of developing systems that facilitated criminal anonymity. They also criticized Tornado Cash’s co-founders for not making adequate changes to exclude sanctioned addresses.
The U.S. government’s crackdown on crypto-mixing services continues, as demonstrated by the recent arrest of the co-founders of Samourai Wallet, Keonne Rodriguez and William Hill. They were charged with conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business.
In response to these developments, Ki Young Ju, CEO of CryptoQuant, stated that crypto mixing services are not inherently criminal.