Roman Storm, co-founder of Tornado Cash, a non-custodial privacy protocol for crypto transactions, is facing prosecution for operating an unlicensed money-transmitting business, conspiracy to commit money laundering, and sanctions evasion. The charges against Storm have raised concerns about the criminalization of software development. Another developer, Michael Lewellen, has filed a lawsuit against the Department of Justice (DOJ) due to fears over releasing new software. The Fifth Circuit Court of Appeals ordered the US Treasury’s Office of Foreign Assets Control (OFAC) to remove Tornado Cash-linked addresses from its SDN list, highlighting that sanctioning the protocol does not prevent bad actors from using it. The court suggested updating legislation to regulate the use of crypto-mixers. The court ruling motivated Storm to request the dismissal of the charges against him. Ethereum co-founder Vitalik Buterin has expressed support for Storm and Tornado Cash, stating that failing to support the developers would "violate basic honor." There is confusion surrounding the interpretation of Section 1960, the charge against Storm, with conflicting interpretations by different government agencies. Amanda Tuminelli, Chief Legal Officer at the DeFi Education Fund, argues that protocols like Tornado Cash, which are non-custodial, should not fall under the scope of Section 1960. Some argue that authorities should focus on bad actors rather than targeting developers.



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