Roman Storm's Tornado Cash trial set after judge denies dismissal bid

Roman Storm, co-founder of Tornado Cash (CRYPTO:TORN), will face a criminal trial after a U.S. judge denied his motion to dismiss charges related to the crypto-mixing platform.

The case, overseen by Judge Katherine Polk Failla in New York, centers around allegations that Storm participated in money laundering, sanctions violations, and operating an unlicensed money-transmitting business.

During a Sept. 26 conference, Judge Failla rejected Storm’s argument that he was simply a developer who created code, stating that Tornado Cash was not just a typical financial service.

She highlighted the Justice Department’s claim that Tornado Cash received nearly $1 million from a venture capital firm in exchange for a share of profits.

The judge remarked, "This was not an altruistic venture," indicating the prosecutors' plausible allegations that Tornado Cash facilitated illegal activities.

Storm, along with fellow co-founder Roman Semenov, was charged last August with multiple conspiracies, including money laundering and sanctions violations.

If convicted on all charges, Storm could face up to 45 years in prison.

The ruling has sparked concern in the crypto community. 

Jake Chervinsky, Chief Legal Officer at Variant, criticized the decision, calling it "an assault on the freedom of software developers everywhere." 

He added, "This will go down in history as a perversion of law and a travesty of justice."

Storm, who pleaded not guilty, argued that Tornado Cash was open-source software beyond his control, developed to provide financial privacy for legitimate cryptocurrency users. 

Prosecutors, however, contend that Storm knowingly profited while facilitating illicit activities.

Storm's trial is set for December 2. 

Meanwhile, his co-founder Alexey Pertsev was previously convicted of laundering $1.2 billion through Tornado Cash and is appealing his sentence. 

Roman Semenov, another co-founder, remains at large.

At press time, the Tornado Cash price was $2.60.