Hope for Retrial
Roman Storm, co-founder of Tornado Cash, who was convicted on one felony count earlier this year, may find hope regarding the possibility of retrial for more serious charges. This was indicated by a recent remark from a senior official at the U.S. Department of Justice.
Reevaluation of Enforcement Strategy
During a recent summit in Wyoming hosted by the American Innovation Project, an organization advocating for the cryptocurrency sector, Matthew Galeotti, the acting assistant attorney general of the criminal division, revealed that the Justice Department is reevaluating its enforcement strategy toward cases involving cryptocurrencies and blockchain technology.
Galeotti referenced a prior memo from U.S. Deputy Attorney General Todd Blanche that emphasized “Ending Regulation by Prosecution“, hinting at a shift in how the DOJ addresses certain cases.
While Storm was not explicitly mentioned, Galeotti’s comments aligned closely with issues pertinent to Storm’s situation. He suggested that the Department would strive for “even-handed enforcement” in cases involving unlicensed money transmission, stating clearly, “Our view is that merely writing code, without ill intent, is not a crime.”
Protecting Innovation
Emphasizing the need to protect innovation, the DOJ official assured that their role wouldn’t transform into a regulatory authority over the digital asset landscape, nor would they wield indictments as a means of establishing new laws. Galeotti recognized the importance of transparency for those in the cryptocurrency space, wanting to eliminate ambiguity about potential criminal liability.
Despite the encouraging tone from Galeotti, it is essential to note that it does not guarantee that the Justice Department will abandon efforts for a retrial against Storm over conspiracy charges of money laundering and sanctions violations—previously, jurors could not reach a consensus on these more serious allegations.
He specified that if software is fundamentally decentralized and operates peer-to-peer without a third party controlling user assets, the DOJ would likely refrain from pursuing new charges related to such technologies.
Background on Charges
In August 2023, Storm was indicted on multiple charges, including money laundering and sanctions violations. Following a month-long trial, he was convicted of operating an unlicensed money transmission service, with a jury unable to decide on the other counts. Sentencing for this conviction is anticipated soon, though no formal court date has been established as of this report.
Throughout the legal proceedings, Storm and his supporters have emphasized the principle that “writing code is not a crime,” a tenet echoed by Galeotti during his speech. He articulated that developers engaged in open-source projects without intent to facilitate wrongdoing are not criminally liable, advocating for a balanced approach to prosecuting those intent on committing actual crimes.
Community Response
The recent shift suggested by the DOJ garnered applause from attendees at the summit, particularly from individuals concerned with the future of digital asset development. Jake Chervinsky, chief legal officer at Variant, urged that justice for Storm would mean terminating ongoing charges against him. As discussions about regulating the cryptocurrency space evolve, this dialogue at the summit marks a pivotal moment, hinting at a potential easing of legal repercussions for innovators in the sector.
