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Tornado Cash Co-Founder Pleads Not Guilty in US Court – Crypto News

Published

3 years ago

September 7, 2023

Dripp

Roman Storm, the co-founder of the popular cryptocurrency-mixing platform Tornado Cash has pleaded not guilty in a United States court following his arraignment over his involvement with the platform prior to it being sanctioned by the US Treasury Department.

The Tornado Cash Founder’s Turmoil

Roman Storm and co-founder Roman Semenov were arrested last year and charged with conspiracy to commit money laundering, an offense which can land them as much as a 20-year jail term if they are found guilty. According to reports from Inner City Press, the developer pleaded not guilty when his charges were read as probably advised by his counsel, Brian Klein.

Judge: How do you plead?
Storm: Not guilty.
AUSA: Defendant with Tornado Cash helped North Korea’s hackers Lazarus Group…There will be discovery from GitHub

— Inner City Press (@innercitypress) September 6, 2023

The Tornado Cash saga is one that has stirred a lot of uproar in the broader digital currency ecosystem as stakeholders including Coinbase Global Inc and Blockchain Association amongst others believe the Tornado Cash co-founders are being persecuted for a piece of code that they had no control over how it is being utilized.

The Tornado Cash mixer became more popular last year when the Treasury Department said it has helped facilitate the laundering of as much as $7 billion in cryptocurrency, most of which belongs to the notorious North Korean hacking syndicate, the Lazarus Group. Owing to this negative designation, the protocol was sanctioned, placing it on the same level as Blender.io which had been equally sanctioned a while earlier.

The subsequent arrest of the Tornado Cash co-founders sparked some protests both on the streets of Amsterdam and online with prominent firms joining the fight against regulators.

Expectation of Positive Outcome

To outsiders watching the arraignment of the Tornado co-founder, the verdict will be that they have a case and per the trajectory of the victory being tapped by top crypto entities in recent times, the basis to be hopeful is high.

The Judge presiding over the case, Judge Katherine Polk Failla is also the one presiding over the Coinbase vs US SEC legal brawl. The expectations in the case are growing much more and overall, the not-guilty plea is a way to go for Roman Storm with about a 30-day timeline assigned for evidence discovery.