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Tornado Cash Loses Motion to Dismiss

Author: Content Editor
In the Tornado Cash case, the judge has denied the Defense's motion to compel discovery and motion to dismiss the charges, which is a setback for the Defense. The Defense sought access to government communications under the Mutual Legal Assistance Treaty (MLAT) and with domestic agencies, arguing that the materials were crucial to understanding the case. However, the judge ruled that the Defense did not show that the requested information was material to their case. The Defense also argued that Tornado Cash did not qualify as a money transmitter under the Bank Secrecy Act, but the judge disagreed and stated that Tornado Cash's role in facilitating cryptocurrency transfers made it fall within the statute's scope. The judge also addressed concerns about the immutability of Tornado Cash's smart contracts, stating that it may play a role in determining the defendant's responsibility for the operations. The ruling emphasizes that while code may be protected speech, using code to facilitate illegal activities is not. Overall, the ruling highlights the challenges of applying traditional legal principles to emerging technologies like blockchain.

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