2024-05-12
On Tornado Cash case number 1:23-cr-00430, USA vs. Storm. TheUS Department of Justice (DoJ) has provided an explanation for why Roman Storm's motion to dismiss his criminal lawsuit has been ineffective.
The DoJ clarified that the indictment against Storm is not related to whether the computer code of Tornado Cash is protected under the First Amendment as free speech.
They emphasized that Storm is being prosecuted for using the code to further an illegal and profitable business, not for simply posting the code.
The DoJ pointed out that the First Amendment does not protect certain forms of speech, such as criminal speech involving threats of violence.
They also highlighted that banks use computer code to process financial transactions, but if that code is considered a money transmitter, it is not considered free speech and must comply with money transmission laws.
Tornado Cash is a combination of code, speech, and business, created by humans. Storm's actions as the owner of Tornado Cash are not automatically protected as free speech just because the code includes open-source components.
The DoJ's focus is on Storm's deliberate actions, particularly his alleged operation of a money laundering scheme that resulted in significant personal profit.
Storm argues that publishing open-source code is not a crime and may reference the Bernstein v. Department of Justice case, which led to changes in regulations regarding the export of encryption software. However, the DoJ maintains that Storm's charges are not vague and that his complaints about the language of the law are not legally valid.
The DoJ also dismisses Storm's claim that he should not be indicted for exporting Tornado Cash software, clarifying that the charge pertains to the illicit funds sent by Lazarus Group, a sanctioned entity, through Tornado Cash.
The DoJ argues that Tornado Cash should have been aware of and taken steps to prevent such transactions.
The final decision on Storm's motion to dismiss will be made by US District Judge Katherine Polk Failla of the US District Court for the Southern District of New York.
