Crypto Advocacy Groups Rally behind Tornado Cash Developer Amid Legal Battle

Three prominent crypto advocacy groups have filed amicus briefs in defense of Roman Storm, the developer behind Tornado Cash. Storm’s defense has been bolstered by amicus briefs filed by Coin Center, the Blockchain Association, and the DeFi Education Fund, all of which are challenging the government’s interpretation of the case.

Tornado Cash in the Eye of Legal Storm

Storm has been at the center of a stormy legal battle since August when he was released on bail after his initial arrest. He was charged with multiple offenses related to his involvement in the Ethereum privacy protocol. Thus, the amicus briefs filed by the three groups are seen as significant support in his defense.

The charges against Storm are for his role as a co-founder of Tornado Cash, a protocol designed to enhance privacy on the Ethereum blockchain. Besides Storm, his co-founders Roman Semenov and Alexey Pertsev, face allegations related to operating an unlicensed money-transmitting business and violating international sanctions.

Challenges to Government Interpretation

Responding to the charges, Storm’s legal team has motioned to have them dropped. They are arguing that the government’s characterization of Tornado Cash and blockchain technology is “fatally flawed”.

In the government’s indictment, it alleged that alleges that Semenov and Storm “engaged in the business of transferring funds on behalf of the public” but that Tornado Cash wasn’t registered with the U.S. Financial Crimes Enforcement Network (FinCEN), leading to the charge of conspiracy to operate an unlicensed money transmitting business.

In a recent report, shows hackers who exploited the Heco Bridge last year used Tornado Cash to launder over $145 million worth of ether within eight days.

Amicus Brief Makes Case for Free Speech

In the amicus brief filed by Blockchain Association, contends the government’s indictment, noting discrepancies in its characterization of Tornado Cash’s operations and its alleged violations of financial regulations. It points out that FinCEN’s own guidance exempts “suppliers of anonymizing software” from money transmitter liability, casting doubt on the government’s claims.

The Coin Center’s brief focuses on the First Amendment implications of the charges in which it argues that Storm’s actions should be protected under free speech principles. DeFi Education Fund, on the other hand, warns of the broader implications of the case, suggesting that a ruling against Storm could set a dangerous precedent for software developers.

As the crypto community awaits the response of government prosecutors to Storm’s motion, analysts say the decision will set precedence in the financial space.