The court decision raises alarming legal concerns for the developers of privacy-preserving blockchain protocols.
Alexey Pertsev’s pre-trial detention has been prolonged in another worrying sign for open-source code developers, particularly of privacy-preserving technologies.
Pertsev, the developer of the cryptocurrency mixing protocol Tornado Cash, will remain in detention as he awaits his trial, he announced in a Nov. 21 X post:
Pre-trial detention is prolonged. Source: Alexey Pertsev
Coin Center says that while a Trump administration will undoubtedly be positive for crypto, there are still several ongoing cases that could prove troublesome to investors and developers.
Non-profit crypto advocacy group Coin Center has warned that even though a Trump win is a net positive for the crypto industry, entrenched policies could still scare crypto innovators away from the United States.
In a Nov. 21 blog post analyzing the landscape of US crypto policy following the 2024 election, Coin Center’s research director Van Valkenburgh shared three “grave threats” to the crypto users and developers in the US heading into 2025.
Source: Coin Center
The Coin Center lawsuit, first filed in 2022, noted that one plaintiff used Tornado Cash to protect his identity while donating money.
Coin Center is appealing an earlier ruling by the United States district court for Northern Florida, which held that Tornado Cash creates indirect benefits for foreign individuals and entities that can be defined as a financial interest subject to sanctions from the Office of Foreign Assets Control (OFAC).
Legal counsel for Coin Center Jeffrey S. Hetzel told the 11th Circuit Court of Appeals, “The easiest way to resolve this case is to hold that in our plaintiffs’ transactions, there is no foreign property. The district court had to erase the word property from the statute.” Hetzel continued the argument:
Attorneys for the United States government countered Hetzel by maintaining that price appreciation of the Tornado Cash token, TORN, directly benefitted TORN holders and asserted that withdrawal fees were a form of accrued benefits for the protocol’s founders.
A handful of Democratic US Representatives are grilling Treasury Secretary Janet Yellen on the continued accessibility of Tornado Cash, an Ethereum (ETH)-based coin mixing system that helps users conceal their digital assets. The US sanctioned the controversial project in 2022 for national security purposes, but seven members of the House of Representatives wrote to Yellen last […]
The post Seven US Representatives Ask Treasury Secretary Janet Yellen Why Tornado Cash Remains Online Despite Sanctions appeared first on The Daily Hodl.
Roman Storm, currently free on bail and facing three federal charges, will have another four months to prepare for his criminal trial.
Tornado Cash co-founder and developer Roman Storm won’t stand trial for money laundering and sanctions violation charges until April 2025.
In a Nov. 1 telephone conference for the United States District Court for the Southern District of New York, Judge Katherine Polk Failla ordered Storm’s trial adjourned until April 14, 2025. The Tornado Cash co-founder’s legal team had been petitioning to dismiss his charges, claiming they were based solely on him writing code for the cryptocurrency mixing service.
In 2023, prosecutors charged Storm and Tornado co-founder Roman Semenov with conspiracy to commit money laundering, conspiracy to commit sanctions violations and conspiracy to operate an unlicensed money-transmitting business. The indictment prompted outrage from many in the crypto industry.
Ethereum co-founder Vitalik Buterin has demonstrated his continued support for Tornado Cash developer Roman Storm by donating an additional 100 ETH, valued at approximately $240,000, to Storm’s legal defense fund. This marks the third contribution from Buterin, bringing the total amount raised for the fund to over 327 ETH. The fund was established to assist […]
The United States Office of Foreign Assets Control sanctioned the Tornado Cash mixer in 2022 — accusing it of facilitating money laundering.
Ethereum (ETH) co-founder Vitalik Buterin recently donated another 100 Ether, valued at approximately $240,000, to Tornado Cash developer Roman Storm's legal defense fund — marking the third time the notable crypto builder has donated to the cause.
According to the Defend Roman Storm crowdsourcing page, 148 different payments have been received for the developer's defense fund — totaling over 327 ETH, valued at roughly $785,000, at the time of writing.
"I can't describe how much it means to me. Thank you for your long-lasting support," the Tornado Cash developer told Buterin following the contribution.
Judge Katherine Polk Failla of the Southern District of New York has reportedly denied the motion to dismiss the charges against Tornado Cash co-founder Roman Storm. Storm’s legal woes stem from allegations that Tornado Cash developers aided the North Korean hacking group Lazarus in laundering illegal funds through the crypto mixer. In a bid to […]
The post US Judge Denies Tornado Cash Developer Roman Storm’s Motion To Dismiss, Trial Set for December: Report appeared first on The Daily Hodl.
Roman Storm, a software developer of Tornado Cash, is headed to trial after a New York judge ruled against his motion to dismiss criminal charges. District Judge Katherine Polk Failla rejected Storm’s request to drop charges tied to money laundering and sanctions violations. Russian co-defendant Roman Semenov remains elusive and on the run, evading capture […]
Tornado Cash developer Roman Storm is eyeing a maximum of 45 years in prison if convicted of all charges, with a trial set for December.
Roman Storm, a developer and co-founder of Tornado Cash, will face criminal trial over his creation of the crypto-mixing platform after a judge denied his motion to dismiss a United States government case.
In a Sept. 26 telephone conference, New York district court judge Katherine Polk Failla denied Storm’s bid to toss three federal charges brought by the Justice Department, saying government prosecutors had lodged plausible allegations against him.
Storm and fellow co-founder Roman Semenov were charged last August with conspiracy to commit money laundering, conspiracy to commit sanctions violations and conspiracy to operate an unlicensed money-transmitting business.
