In a significant development for the cryptocurrency world, Roman Storm, co-founder of the controversial mixing service Tornado Cash, is gearing up for a trial set to commence on December 2, 2024, in New York.
This follows a recent ruling by District Judge Katherine Polk Failla of the Southern District of New York, who denied Storm’s motion to dismiss serious money laundering charges against him.
Storm, alongside his co-founder Roman Semenov, faces a slew of allegations, including conspiracy to commit money laundering, conspiracy to violate the International Economic Emergency Powers Act (IEEPA), and conspiracy to operate an unlicensed money-transmitting business.
The charges arise from claims that Tornado Cash played a pivotal role in laundering over $1 billion in illicit funds, with connections to the notorious North Korean cybercrime group, Lazarus.
In his defense, Storm’s legal team argued that his involvement in the development of Tornado Cash’s software should be protected under the First Amendment, framing it as a matter of free speech.
However, Judge Failla firmly rejected this argument, stating that the “functional capability” of the code does not equate to free speech as defined by the Constitution. She underscored that the government’s efforts to combat money laundering and sanction evasion are not aimed at suppressing free expression.
The court’s ruling also clarified that control over the funds was not a necessary element for the charges under the 1960 statute. Instead, the prosecution only needs to demonstrate that Storm was aware he was dealing with proceeds from criminal activities.
The judge dismissed claims regarding due process, asserting that Storm’s state of mind and intent are issues for the jury to resolve.
