The United States Department of Justice (DoJ) has filed a response to the Motion to Dismiss (MTD) request demanded by Roman Semenov, the embattled co-founder of Tornado Cash.
Semenov argued in his MTD that the regulators did not have a basis to charge him. Notably, he based his argument on the premise that he designed the code and could not control how it is used. The regulator shared a 111-page filing that further analyzes why Semenov should answer for the alleged crimes.
Tornado Cash Was Actively Managed
If the Tornado Cash adoption was centered on only on-chain usage, perhaps Semenov could be excused. However, the DOJ noted that the developer played an active role in maintaining the website to ensure its continued functionality.
The Department of Justice Prosecutors led by Damian Williams noted that Roman Semenov hosted the platform to keep it online. They also argued that he and other executives developed solutions that ensured its anonymity.
The prosecutors also pointed out that the website changes done by Tornado Cash developers to screen out sanctioned addresses was not enough. As a crypto mixing service, the regulators charged Tornado Cash for facilitating billions in laundered funds. The primary entity the DOJ frowned at in its usage of the platform is the notorious North Korean Lazarus Group.
The charges against Tornado Cash remain un-amended with several count charges likely to bag Semenov multiple years in jail.
Industry Support Waning
The arrest of Roman Semenov in 2022 sparked a very widespread outrage in the industry at the time. To lend support to the developer community, several crypto-focused firms backed lawsuits against the US Treasury Department for sanctioning Tornado Cash at the time.
While the lawsuit was lost in court, the broader regulation terrain in the US has come under new spotlight. From crypto trading exchanges’ crackdowns to stablecoin regulation, more attention is now beaming on the industry.
