DOJ Rejects Tornado Cash Founder’s Claim of Being 'Just a Developer'

In a 111-page motion, the US Department of Justice (DOJ) has rebuffed the claims made by the co-founders of Tornado Cash, a cryptocurrency mixing service, challenging the accusations against them and asserting their role as mere developers.

Tornado Cash as a Commercial Enterprise

Government prosecutors, led by US Attorney Damian Williams, countered the defense's argument, asserting that Roman Semenov's involvement in Tornado Cash extended beyond mere coding. Despite being aware of the platform's use in laundering illicit funds, Semenov continued to support its operation, thereby profiting from its activities.

Prosecutors' Assertion

The DOJ emphasized that Tornado Cash operated as a commercial enterprise aimed at profit or financial gain. They highlighted Semenov's control over key components of the platform and his alleged profit from its operation.

Role of Smart Contracts and Relayer Network

While smart contracts facilitated the crypto mixing operation, the majority of users accessed the service through its website interface. Additionally, the relayer network, utilized by 98% of users, was set up and operated by relayers manually allowed by Tornado’s co-founders until March 2022.

Actions Beyond Code Writing

Contrary to Semenov's claim, prosecutors argued that Tornado Cash indeed functioned as a money-transmitting business. They emphasized the automated nature of fund transfers within the platform and highlighted Semenov and Storm's continued efforts to sustain Tornado Cash's operation, including hosting the site, paying for blockchain transactions, and developing new features.

Allegations of Conspiracy

The government alleges that Semenov and Storm's actions, performed after becoming aware of Tornado's involvement in laundering proceeds from hacks, are part of the conspiracy charged in the indictment. This includes their failure to implement anti-money laundering programs and their maintenance of the relayer network.