tornadocash

Keonne Rodriguez and William Lonergan Hill, the co-founders of privacy-focused Samourai Wallet, are facing a dramatic turn in their legal battle with the U.S. Department of Justice. According to court filings dated July 29, both men are set to plead guilty to money laundering charges in a case that could significantly impact the future of privacy tools in the crypto space.
🔹 The charges stem from allegedly operating an unlicensed money-transmitting business and facilitating illegal transactions totaling more than $100 million. Prosecutors argue that Samourai Wallet was marketed as a “safe haven” for anonymous crypto activity—attracting illicit actors seeking to bypass sanctions.

A Brief Hope: FinCEN vs DOJ
Earlier this year, their defense team revealed that FinCEN, the U.S. financial crimes watchdog, had privately ruled that Samourai Wallet did not qualify as a money transmitter. They also accused the DOJ of suppressing critical evidence, giving hope that the case might be dismissed entirely.
However, that hope was short-lived. If convicted, Rodriguez and Hill face up to 25 years in prison. And their guilty plea could have far-reaching consequences.

Ripple Effect: Tornado Cash Feels the Heat
The development adds new pressure to another high-profile case—that of Roman Storm, co-founder of Ethereum-based mixing service Tornado Cash. Storm faces similar charges related to smart contracts allegedly used by North Korean hackers and sanctioned entities.
His associate, Alexey Pertsev, has already been convicted in the Netherlands, but Storm maintains his innocence. Now, with Samourai’s founders preparing to plead guilty, prosecutors may lean on that outcome as precedent for their case against Tornado Cash, especially given the nearly identical privacy-related allegations.

A War on Code?
Voices across the crypto industry, including Ethereum co-founder Vitalik Buterin, have long defended both Samourai Wallet and Tornado Cash, arguing that writing code should not be a crime.
Many in the community stress that privacy is a core principle of blockchain, and developers should not be held liable for how criminals misuse open-source tools.

#TornadoCash , #DOJ , #Cryptolaw , #MoneyLaundering , #Ethereum

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

A major legal battle in New York is nearing its conclusion in one of the most closely watched crypto trials in recent memory. Roman Storm, co-creator of the controversial mixer Tornado Cash, faces serious charges — and U.S. prosecutors claim his motive wasn’t digital freedom or privacy, but “bags of dirty money.”

Prosecutors: Tornado Cash Was Built for Criminals
Federal prosecutor Benjamin Gianforti told the jury during closing arguments on Wednesday that Storm and his team may have spoken about privacy, but their true aim was enabling the laundering of billions of dollars.
“This entire business was about providing privacy for criminals,” said Gianforti. “This wasn’t about regular people. Tornado Cash was tailor-made for criminal networks.”
According to the prosecution, Storm’s code allowed hackers and cybercriminals to obscure stolen funds and evade sanctions through a decentralized, non-custodial privacy protocol launched in 2019. Specific references were made to attacks involving North Korean state-backed groups.

Defense: He Didn’t Intend to Help Criminals — Just Protect Ordinary Users
Storm’s attorneys argue he never intended for Tornado Cash to be used by hackers. According to defense lawyer David Patton, the tool was designed to allow anyone to send and receive funds privately.
“Roman did nothing wrong. He created open-source code that anyone could use — including people who simply wanted to send money discreetly without being tracked,” Patton stated.
Tornado Cash worked by mixing funds from various users and redistributing them, breaking the direct link between sender and receiver. The defense argued that similar privacy-preserving techniques exist in traditional finance too.

The Charges and Possible Consequences: Over 40 Years in Prison
Storm faces three main charges:

🔹 Conspiracy to commit money laundering

🔹 Conspiracy to violate sanctions

🔹 Operating an unlicensed money transmission business
If convicted on all counts, he faces a maximum sentence of over 40 years behind bars.
This case has drawn significant attention not only due to the nature of Tornado Cash but also for its broader implications for software development. The crypto community warns that a “guilty” verdict could set a precedent: that developers are responsible for how their open-source code is used — even without malicious intent.

Jury Deliberates — Verdict Could Come Soon
A 12-member jury began deliberations Wednesday evening but quickly adjourned for the day. The final verdict could come as soon as Thursday.
There’s no time limit for jury deliberation in the U.S., and some juries take months to reach a decision. But this trial has the crypto world holding its breath, awaiting a judgment that could redefine the limits of digital privacy and coding freedom.

🔍 One-Minute Summary:
The U.S. court is deciding whether Roman Storm is a cybercriminal or a scapegoat for tech freedom. While prosecutors argue Tornado Cash was built for crime, the defense insists it was a neutral tool for privacy. The verdict could reshape how open-source development is treated under U.S. law.

#TornadoCash , #Web3Security , #crypto , #Regulation , #CryptoNews

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

The U.S. Department of Justice (DOJ) has distanced itself from earlier claims suggesting it planned to prosecute the crypto investment firm Dragonfly for its support of the controversial protocol Tornado Cash. Dragonfly argued that the initial statement served as an intimidation tactic to prevent its involvement in the defense of Roman Storm.

🔹 DOJ Clarifies Its Position: Dragonfly Is Not Under Investigation
Thane Rehn, a federal prosecutor and Assistant U.S. Attorney, recently stated that previous media reports were “inaccurate and misleading.” He emphasized that no individuals associated with Dragonfly — including directors, executives, employees, or controlling investors — are targets of any investigation.
“The government wants the record to be crystal clear: Dragonfly is not the subject of this investigation,” said Rehn.

🔹 Dragonfly Accuses DOJ of Intimidation
Dragonfly issued a sharp response, claiming the DOJ attempted to silence the firm by implying it could face prosecution for merely backing Tornado Cash. The controversial remark came during a public hearing, where a DOJ prosecutor suggested that financial support for the privacy-focused, open-source protocol might be grounds for criminal charges.
The timing was notable, as Dragonfly partner Tom Schmidt had recently attended a conference and was expected to testify in support of Storm — one of Tornado Cash’s developers.
Hasseeb Qureshi, Managing Partner at Dragonfly, described the DOJ’s behavior as “unprecedented” and “in violation of its own policies.”
“The DOJ should never publicly speculate about potential prosecution of third parties during open court proceedings. This move was clearly designed to silence us,” said Qureshi.

🔹 What’s at Stake
The case has broader implications for open-source development and privacy rights in the crypto space. Prosecuting investors for backing technology alone could set a dangerous legal precedent.
“The outcome of this case could shape the future of privacy and software freedom in the United States,” warned Qureshi.
Earlier this year, U.S. authorities removed Tornado Cash from the sanctions list, acknowledging that North Korean hackers had exploited the protocol for laundering illicit funds. Nevertheless, the project's developers — including Roman Storm — still face legal proceedings.
A decisive ruling is expected this week, potentially influencing not just the defendants' fate but also the future of decentralized protocols and financial freedom in the U.S.

#TornadoCash , #DOJ , #Cryptolaw , #CryptoCommunity , #Web3

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

2min Read
Dragonfly stated that DoJ's last week threat was meant to prevent it from defending Roman Storm.
Key Takeaways 
DOJ has backtracked on last week’s reports that it would bring charges against crypto VC Dragonfly for supporting Tornado Cash. 
The U.S. Department of Justice (DOJ) has clarified it is not pursuing charges against crypto venture capital firm Dragonfly over its investment in #TornadoCash .
In a statement, Thane Rehn, Federal Prosecutor and Assistant U.S. Attorney, said recent media reports were “inaccurate and misleading.”
He added, 
“The government wants the record to be clear that it has not identified Dragonfly or any of its directors, officers, employees, or controlling as targets of its investigation.”
Source: X
Dragonfly slams DoJ
The DoJ’s U-turn followed Dragonfly’s pledge to fight and stand by its investment in Tornado Cash should the justice system proceed with the reported threat of charges. 
The controversy arose after #DOJ prosecutors hinted in open court that Dragonfly could face charges simply for backing an open-source privacy protocol.
In fact, the comment followed a last-minute conference involving Dragonfly partner Tom Schmidt, who had been approached to testify in Roman Storm’s ongoing trial.
Hasseeb Qureshi, managing partner at the VC firm, welcomed the move but maintained that last week’s ‘threat’ was a ‘clear violation of DoJ policy.’
“The DOJ’s public statements on Friday in open court—that Dragonfly, as investors, could face prosecution merely for backing an open-source privacy technology—was not only unprecedented, it was a clear violation of DOJ policy.”
Qureshi said the DOJ used the veiled threat to discourage them from defending Storm.
“They (DoJ) are never allowed to speculate on prosecuting a third party in open court in front of the media. The prosecutors did this to prevent us from testifying for the defense.”
What’s at stake
The incident sparked broader concerns across the tech and crypto communities. In fact, this case would be unprecedented if the DOJ had gone after the financial backers of crypto protocols. 
Qureshi added,
“Its outcome will have massive implications for open-source software and privacy rights in America. We are hopeful that the American judicial system will get this right.”
The U.S. removed Tornado Cash from its sanctions list in early 2025 after accusing North Korean hackers of using it to launder funds.
But regulators have not cleared its developers, including Storm. Their legal fate could be decided as soon as this week.
#DELABSBinanceTGE @WISE PUMPS

The #TornadoCash co-founder is calling for urgent donations as his legal battle intensifies.

Facing serious charges, Storm’s case now stands at the center of the crypto debate over privacy, open-source rights, and government overreach.

Yesterday, the U.S. District Court for the Western District of Texas lifted sanctions against Tornado Cash, a protocol for mixing cryptocurrencies that were imposed by the Treasury Department's Office of Foreign Assets Control (OFAC). This decision has become an important event for the crypto industry and raises many questions about the future of privacy technologies.
The history of sanctions
In August 2022, Tornado Cash was included in the OFAC sanctions list due to allegations of facilitating illegal transactions worth more than $455 million related to the North Korean Lazarus Group. These actions caused a wide response: developers, including Alexey Pertsev, were arrested, and the crypto community began to talk about where the line between innovation and compliance with the law lies.
Why is the decision important?
The court ruled that OFAC's actions may have exceeded their authority. The plaintiffs, consisting of Tornado Cash users, argued that immutable smart contracts are not "proprietary" in accordance with the law, and their blocking is contrary to the law.
In addition, they emphasized that blockchain is transparent by nature, and tools such as Tornado Cash perform legitimate functions to protect user privacy.
The Future of Privacy in Cryptocurrencies
This victory raises the question of how to regulate privacy-preserving technologies. Some, like Matthew Niemerg of Aleph Zero, believe that innovation and privacy must go hand in hand with meeting legal requirements. However, there are still many unresolved issues: for example, the responsibility of developers for using their technologies.
Alexey Pertsev is still in custody, despite the fact that Tornado Cash is a decentralized protocol that he did not directly manage. This case raises the question of how much personal responsibility can be applied to the creators of such technologies.
What does this mean for the cryptocurrency industry?
The court ruling could set a precedent that points the way to a more balanced regulation where innovation is protected and abuse is prevented. But while the industry is waiting for further development of the Pertsev case and clarification of legislation, the question remains open.:
How do you think it is possible to achieve a balance between privacy protection and security in the crypto industry?
#TornadoCash #cryptocurrency #crypto