Attorneys representing Roman Storm, the developer of Tornado Cash, have filed a motion requesting the court to reconsider the dismissal of the case, citing the prosecution’s failure to disclose exculpatory evidence related to communications with the Financial Crimes Enforcement Network (FinCEN) dating back to 2023. Court documents reveal that non-custodial crypto mixers, including Tornado Cash, do not meet the legal definition of a “money transmitting business,” a fact that the prosecutors were aware of since 2023. Despite this knowledge, the prosecutors pursued cases against developers of similar services, such as Samourai Wallet. The defense argues that the prosecution failed to disclose this information in a timely manner, similar to the Samourai Wallet case. The defense contends that the cases share core characteristics under the law, making the FinCEN documents crucial to dismissing the charges against Storm. Meanwhile, a ruling by Federal Judge Robert Pitman on April 28 barred the Office of Foreign Assets Control (OFAC) from reimposing sanctions on Tornado Cash, setting a legal precedent for cases involving non-custodial mixers. Despite this ruling, federal prosecutors are proceeding with the case against Storm, albeit with modified charges. The ongoing legal battle highlights the complexities surrounding cryptocurrency mixers and the regulatory challenges they present in the evolving digital asset landscape.
