Unified Support from Key Crypto Organizations
In a significant show of solidarity, three major cryptocurrency advocacy groups—Coin Center, the Blockchain Association, and the DeFi Education Fund—have filed amicus briefs in support of Roman Storm, a developer for the Ethereum privacy protocol Tornado Cash, who is currently facing legal challenges. These organizations have come forward to assist Storm in his motion to drop the charges levied against him, arguing that the indictment contains numerous factual and legal inaccuracies.
Details of the Charges and Legal Arguments
Roman Storm, arrested in August, faces charges alongside his co-founder Roman Semenov, related to their work on Tornado Cash—a protocol that mixes cryptocurrency transactions to preserve user privacy. Alexey Pertsev, another co-founder, is also embroiled in related legal proceedings in the Netherlands. The charges include operating an unlicensed money transmitting business and conspiracy related to alleged sanctions violations.
The advocacy groups argue that Tornado Cash does not meet the U.S. Financial Crimes Enforcement Network’s (FinCEN) definition of a money transmitter because it does not exert independent control over user assets. This point challenges the foundation of the government’s case, suggesting that the developers’ actions should not constitute operating an unlicensed money transmitting service.
Implications for Software Developers and the Crypto Industry
The briefs emphasize the broader implications of the case for the software development and cryptocurrency industries. Particularly, they highlight the potential risks of imposing such liabilities on developers for how their software might be used by third parties. This could set a precedent where developers are held criminally liable for their software’s unintended uses, a scenario that could stifle innovation and deter open-source software development.
First Amendment Defenses and International Precedents
Coin Center’s brief also provides a First Amendment defense, arguing that decisions about the software’s functionality and release predated any alleged misuse by groups like the Lazarus Group. This defense aligns with international examples where software tools are used in ways that the developers did not intend nor endorse.
As the crypto community watches closely, the outcome of this case could have far-reaching consequences for developer liability and the definition of money transmission within the crypto space. Government prosecutors have not yet responded to Storm’s motion to dismiss, but the crypto community’s robust defense highlights the case’s significance and its potential impacts on the future of cryptocurrency regulation.
