Venture capital firm Paradigm has submitted an amicus brief in support of Tornado Cash co-founder Roman Storm, arguing that the jury needs to correctly understand the legal definition of operating a money transmission business.
In the amicus brief submitted to the U.S. District Court for the Southern District of New York on June 13, Paradigm pointed out that the court must ensure the jury understands that to convict Storm, the prosecution must prove he knowingly operated a money transmission business. This includes charging fees, knowingly transmitting funds on behalf of the public, knowingly handling specific funds alleged to be criminal proceeds, and having custody or control over the transmitted or transferred funds.
An amicus brief is submitted by a third party that is not directly involved in the case but has an interest in the outcome and wishes to provide the court with advice or another perspective.
Tornado Cash is a non-custodial cryptocurrency mixing protocol, and the developers never held or controlled the funds. The U.S. Attorney's Office for New York has accused Storm of conspiring to operate the cryptocurrency mixing service as an unlicensed money transmitter.
Paradigm's Chief Legal Officer Katie Biber and General Counsel Gina Moon stated in a blog post on Tuesday that the prosecution's argument "contradicts the plain text of the law, the clear guidance from the Financial Crimes Enforcement Network (FinCEN), and decades of case law."
Biber and Moon noted that during former President Obama's administration, the U.S. Treasury Department determined in 2014 that software development does not constitute the acceptance and transmission of value.
They also mentioned that in 2019, the department found that complete independent control of users' cryptocurrency is a factor in determining whether an intermediary is a money transmitter.
They stated, "Allowing this charge to persist could enable unelected prosecutors to alter the clear meaning of criminal regulations and threaten ordinary citizens who follow widely disseminated and accepted regulatory guidance with the risk of imprisonment."
In August 2023, the U.S. charged Roman Storm and his co-founder Roman Semenov, claiming they helped launder over $1 billion in cryptocurrency through Tornado Cash.
Biber and Moon emphasized that this matter "is significant" because if Storm is convicted, it could hinder innovation and software development in the cryptocurrency and fintech sectors. They also pointed out that this could have a ripple effect on the broader open-source, artificial intelligence, and technology communities, as software developers might be held liable for how their products are used.
They remarked, "It is as absurd as suing a television manufacturer for sharing state secrets during a live broadcast, a leather wallet craftsman for having stolen cash in a wallet, or Apple for conspiracy conversations conducted via iPhone."
The trial is expected to begin on July 14. On May 15, after the Department of Justice released a memo in April stating it would not prosecute cryptocurrency mixers like Tornado Cash for user activities, the conspiracy charge of operating an unlicensed money transmission business was dropped.
Related: Former TON Foundation executive launches Telegram-based cryptocurrency investment app
Original article: “Paradigm Calls for Jury Clarity in Roman Storm's Tornado Cash Case”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
