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Ethereum based crypto mixer Tornado Cash founder to face trial on alleged money laundering

  • Tornado Cash co-founder Roman Storm is set to face trial on money laundering charges as a US federal judge denies motion to dismiss the lawsuit. 
  • The US Department of Justice brought charges against the founder of the Ethereum based crypto mixer, for laundering over $1 billion.
  • Roman Storm not protected by the First Amendment, each charge against storm carries a maximum prison term of 20 years. 
  • Ethereum trades above key support at $2,600 on Saturday. 
Ethereum based crypto mixer Tornado Cash founder to face trial on alleged money laundering
Ekta MouryaEkta MouryaFXStreet

Tornado Cash is a cryptocurrency mixer based on the Ethereum blockchain. Tornado Cash’s co-founder Roman Storm faces three charges from the US Department of Justice (DoJ) that carry a maximum prison term of 20 years each, alongside a conspiracy charge that warrants up to five years in prison. 

Storm’s motion to dismiss the lawsuit was denied and the executive is set to face trial. 

Tornado Cash co-founder to face trial on charges brought by US DoJ

Roman Storm’s lawyers argued that the Tornado Cash co-founders involvement in the crypto mixer and the funds laundered through it is limited to the development of the software, protected by the First Amendment. However, District Judge Katherine Polk Failla of the Southern District of New York (SDNY) denied Storm’s motion to dismiss the criminal charges and said that the argument is not sufficient to overcome the US DoJ’s complaint, per a Coindesk report on the matter. 

According to Judge Failla, the government brought plausible allegations against the Tornado Cash developer and the functional capability of code does not qualify as free speech. 

Roman Storm is now set to face trial for money laundering and conspiracy charges brought against him and the co-founder faces prison term as well. 

Binance’s former CEO Changpeng Zhao (CZ) ended his prison term and walked free on Friday, September 27. 

Ethereum trades above $2,600 support, exchanges hands at $2,664 at the time of writing. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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