Tornado Cash Co-Founder to Stand Trial as Judge Rejects Dismissal Plea

A U.S. federal judge has ruled that Roman Storm, co-founder of Tornado Cash, will face trial as his motions to dismiss the charges and compel discovery were denied.

Judge Katherine Polk Failla stated that Storm’s argument—that he was merely prosecuted for writing code—was an oversimplification.

Storm and fellow co-founder Roman Semenov were charged in August 2023 with conspiracy to commit money laundering, sanctions violations, and operating an unlicensed money transmitting business. According to the indictment, they knowingly aided criminals in concealing illicit funds under the guise of offering a privacy service.

In his March 2024 motion, Storm argued that Tornado Cash was not a financial institution, as it did not handle financial transactions or charge fees. However, prosecutors disagreed, labeling Tornado Cash as a money transmitting business.

Judge Failla concluded that the charges against Storm were sufficient, emphasizing that Tornado Cash was not a purely altruistic operation, citing evidence that the founders raised $900,000 from venture capital with expectations of profit sharing.

Storm’s request to compel the release of government communications concerning Tornado Cash was also rejected, with Failla noting the defense failed to demonstrate the necessity of such information.

The case against Storm and Semenov will proceed to discovery, with a jury trial set for December 2, 2024.