Suspected money laundering charges will be heard in trial of Tornado Cash, creator of Ethereum-based crypto mixer
A US federal court has denied a petition to dismiss the action, meaning that Roman Storm, co-founder of Tornado Cash, will face money laundering allegations at trial.
The creator of the Ethereum-based cryptocurrency mixer is facing accusations from the US Department of Justice for allegedly laundering more than $1 billion.
The First Amendment does not protect Roman Storm, and a maximum of twenty years in jail is imposed for each accusation against him.
On Saturday, Ethereum prices bounced off crucial support at $2,600.
One such cryptocurrency mixer that uses the Ethereum blockchain is Tornado Cash. Roman Storm, co-founder of Tornado Cash, is facing three counts with a combined possible jail penalty of twenty years, as well as a conspiracy charge with a maximum prison term of five years.
The US Department of Justice has charged Roman Storm, co-founder of Tornado Cash, with money laundering and crypto mixer crimes. Storm's attorneys have said that his role in the project is limited to the creation of the software, which is a First Amendment right. Storm will stand trial on these accusations in the coming months. In spite of Storm's efforts to have the criminal charges dismissed, District Judge Katherine Polk Failla of the Southern District of New York (SDNY) ruled that the reasoning was insufficient to counter the US Department of Justice's lawsuit, as reported by Coindesk.
Judge Failla ruled that the government's claims against Tornado Cash's creator were reasonable, and that the developer's capacity to make code work did not constitute free speech.
The co-founder and Roman Storm are both facing possible jail time as a result of allegations of conspiracy and money laundering that are now scheduled to be heard in court.
As this is written, Ethereum is trading at $2,664, which is above the $2,600 support.
