Tornado Cash Co-Founder Fights to Dismiss Criminal Charges

Roman Storm, co-founder of the controversial crypto mixer Tornado Cash, is pushing to have criminal charges against him dropped. This follows a landmark appellate court ruling that found the actions of the Office of Foreign Assets Control (OFAC) against the platform to be an overreach of authority.  

Tornado Cash has long been a source of concern for regulators due to its ability to obfuscate cryptocurrency transactions, creating opportunities for money laundering and terrorism financing. Leveraging smart contract technology, Tornado Cash offers a high level of anonymity, making it a favored tool for illicit activities. This functionality ultimately led to OFAC sanctions and the arrests of its co-founders, Russian nationals Roman Storm and Roman Semenov. 

The appellate court’s ruling, which deemed sanctions against Tornado Cash smart contracts unlawful, establishes a precedent that could significantly impact criminal cases involving cryptocurrency mixers.

In his motion filed with the Manhattan court, Roman Storm contends that the appellate decision undermines the validity of all three charges against him, including allegations of conspiracy to violate the International Emergency Economic Powers Act (IEEPA). The court determined that smart contracts cannot be classified as property owned by foreign individuals, rendering their seizure under IEEPA illegitimate.

The immutability of Tornado Cash’s smart contracts means that even its developers cannot control or block transactions processed through the platform. This creates a paradox where a technology designed to protect privacy can also be misused for illegal activities, while its creators cannot be held directly responsible for users’ actions.

Roman Storm further asserts that Tornado Cash is not a financial institution but a decentralized platform, making allegations of conspiracy to commit money laundering unfounded.

This case reflects a broader trend in shifting U.S. policy toward cryptocurrencies. The appellate court’s ruling opens new legal opportunities for defense in criminal crypto-related cases. Many prosecutions that once appeared hopeless may now be revisited in light of this significant precedent and evolving judicial practices.

There is even speculation that Ross Ulbricht, the first person imprisoned for cryptocurrency-related offenses, could potentially be granted freedom in the future.