Advocacy groups warn of ‘adverse repercussions’ for crypto in case against Tornado Cash co-founder

cyptouser7 months agoCryptocurrencies News110
92485d12>

Representatives of three United States-based cryptocurrency advocacy organizations have filed amicus briefs in support of a motion to dismiss the charges against Tornado Cash co-founder Roman Storm.

In April 5 filings in U.S. District Court for the Southern District of New York, the Blockchain Association, Coin Center and DeFi Education Fund argued that Tornado Cash did not have control of the funds or messages 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 and the U.S. government “misunderstand[ing] the basic relationship between smart contract protocols and their developers” regarding allegations of money laundering.

“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,” said Blockchain Association Head of Legal Marisa Coppel. “We urge the court to hold the government up to its burden and dismiss the unfounded charges, safeguarding both the defendants’ rights and the integrity of the burgeoning digital asset sector.”

Source: Peter Van Valkenburg

The U.S. Justice Department announced charges against Storm and co-developer Roman Semenov in August 2023. Storm pleaded not guilty to all three charges and is free on a $2 million bond, largely restricted from traveling. Semenov’s whereabouts were unknown at the time of publication, but Storm is set to go to trial in September.

Related: Here are the next biggest crypto court cases with the SBF saga over

In the Netherlands, Tornado Cash developer Alexey Pertsev was arrested in August 2022 but released after roughly nine months in jail. Dutch authorities alleged he played a role in North Korean hacking groups using the crypto mixer to launder roughly $1 billion in illicit funds.

All three cases are connected to the U.S. Treasury’s Office of Foreign Asset Control adding crypto addresses associated with Tornado Cash to its list of Specially Designated Nationals — sanctioned entities. The decision prompted some crypto advocates to sue the U.S. Treasury, but both cases await appeal after losing summary judgment motions.

Magazine: Lawmakers’ fear and doubt drives proposed crypto regulations in US

The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other issues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.

related articles

Bitcoin sub-$60K levels in focus after daily crypto liquidations near $300M

Bitcoin sub-$60K levels in focus after daily crypto liquidations near $300M

55966e89˃Bitcoin (BTC) hit two-week lows around the April 30 Wall Street open after new spot price e...

MetaMask expands crypto on-ramp options with Stripe integration

MetaMask, a popular Ethereum and multi-coin wallet, announced support for the major payment processo...

Bitcoin price entering ‘euphoria’ zone amid wealth rotation from ‘HODLers to new investors’ — Data

Bitcoin price entering ‘euphoria’ zone amid wealth rotation from ‘HODLers to new investors’ — Data

b98df8a0˃Bitcoin (BTC) price has rallied more than 200% over the last year to set a record high abov...

Hashing It Out: Can blockchain create a sovereign internet?

Hashing It Out: Can blockchain create a sovereign internet?

25cc9d4a˃A week after experiencing an internet blackout in his country, Hashing It Out host Elisha O...

Make your code immutable to avoid jail, policy exec advises devs

Make your code immutable to avoid jail, policy exec advises devs

1205f261˃Developers building decentralized applications (DApps) should ensure the backing smart cont...

The data availability layer will be the basis of the modular blockchain ecosystem

55966e89˃Modular blockchains, driven by key layers like data availability (DA), are revolutionizing...