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Crypto Groups File Amicus Briefs in Support of Tornado Cash Developer – Crypto News

Published

1 year ago

April 7, 2024

Dripp

Several pro-crypto organizations have come forward in support of Roman Storm, a developer of the Ethereum privacy protocol Tornado Cash. Storm, arrested in August, faces charges related to his involvement with the platform. Last week, he sought to dismiss the charges, arguing against the government’s portrayal of Tornado Cash and blockchain technology.

Roman Semenov, another co-founder, remains at large, whereas Alexey Pertsev awaits his trial verdict in the Netherlands. Coin Center, the Blockchain Association, and the DeFi Education Fund filed amicus briefs defending Storm, challenging the government’s case against him.

The briefs, though filed separately, share similar arguments against the charges. They contest the government’s depiction of Tornado Cash as an unregistered money-transmitting business, a characterization that the organizations argue misinterprets existing regulations.

These documents emphasize the technical workings of Tornado Cash, asserting that its developers do not control user assets directly. The groups warn of the broader implications for developers if the court sides with the government, potentially rendering compliance with certain laws unfeasible for software creators.

Blockchain Association Challenges Tornado Cash Classification

The Blockchain Association‘s brief criticizes the government’s understanding of Tornado Cash, citing inconsistencies with FinCEN’s definitions. It highlights the software’s autonomous nature, pointing out that developers lack control over user transactions.

This stance suggests a fundamental disagreement with the classification of Tornado Cash as a money-transmitting service. The association fears such a precedent could endanger the future of anonymizing protocols, challenging the practicality of adhering to the Bank Secrecy Act for developers.

Coin Center’s brief addresses the count of conspiracy to violate the International Economic Emergency Powers Act (IEEPA) with a First Amendment defense. It argues that the decisions regarding the software’s release predated any knowledge of misuse by malicious actors, such as the Lazarus Group.

Drawing parallels with the open-source Linux operating system, Coin Center contends that implicating Tornado Cash’s developers in sanction violations is unjust. The organization stresses the importance of protecting software developers from such broad interpretations of complicity.

DeFi Fund Warns Against Criminalizing Software Developers

The DeFi Education Fund’s brief presents a stark outlook on the potential consequences of the case against Storm. It cautions against a legal precedent that could criminalize software developers for how third parties use their open-source code.

This view suggests an almost limitless scope of prosecutorial power, endangering developers who may not control or foresee the uses of their creations. The brief emphasizes the absence of a limiting principle, which could expose developers to liability for actions taken by others years after the software’s release.