Tornado Cash Co-Founder Backed by Paradigm in Legal Fight

• In 2023, Roman Storm and his fellow Roman Semenov were charged by the US, claiming that they helped launder more than $1 billion in crypto.
• A trial in this case is expected to commence on July 14

A research-driven crypto investment firm, Paradigm, recently filed an amicus brief supporting the co-founder of Tornado Cash, Roman Storm

In the filing, the court argued that the jury needs to be clearly briefed on the definition of the law of what the functioning of a money-transmitting business involves. On June 13, the brief was filed in a New York District court

The firm has also demanded that the court make sure that the jury understands that for Storm to be found guilty, the suit must prove he was consciously operating a money-transmitting business

The business includes charging fees, purposely transmitting funds on behalf of the public, along with managing some profits claimed to be criminal, and having custody or control of the funds being transferred

What Did The CLO and The General Counsel of The Firm Say?

An amicus brief is filed when a party isn’t directly involved in the case but shows interest in it and can provide the court with advice or any other perspective. On June 16, the chief legal officer, Kaite Biber, and the general counsel of Paradigm, Gina Moon, posted a blog mentioning:

“The argument of prosecution is contrary to the plain text of the law, clear FinCEN guidance, and decades of case law.” They further argued that under Ex-President Barack Obama, the US Treasury Department found around ten years ago that software development did not include an acceptance and transfer of value

In 2019, they also claimed that the department found that complete independent control over crypto of users was a factor in deciding if an intermediary is a money transmitter

And permitting this charge to keep risks, giving an opportunity to prosecutors to change the plain meaning of criminal statutes, and intimidating everyday citizens with imprisonment even if they are following broadly disseminated and accepted regulatory guidance

In 2023, Roman Storm and his fellow Roman Semenov were charged by the US, claiming that they helped launder more than $1 billion in crypto via Tornado Cash. A trial in this case is expected to commence on July 14

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