Tornado Cash Founder Faces Money Laundering Trial

• The founder of Ethereum-based crypto mixer Tornado Cash, Roman Storm, is set to stand trial for money laundering after a US federal judge denied a motion to dismiss the lawsuit.
• The US Department of Justice has accused Storm of laundering over $1 billion through Tornado Cash.
• Roman Storm faces potential prison terms of up to 20 years per charge, with no protection under the First Amendment.
• Ethereum holds above key support at $2,600 as of Saturday.

Tornado Cash, a cryptocurrency mixer operating on the Ethereum blockchain, is at the center of a high-profile legal case. Roman Storm, the co-founder of Tornado Cash, faces several charges levied by the US Department of Justice (DoJ) for alleged money laundering amounting to over $1 billion. Each of the three charges carries a potential maximum sentence of 20 years in prison, with an additional conspiracy charge that could add up to five more years.

Despite efforts to dismiss the lawsuit, Storm will be going to trial to face these serious allegations.

Ethereum Co-founder Set for Trial Amid Money Laundering Allegations

Roman Storm’s defense team argued that his involvement with Tornado Cash was restricted to developing the software, which should be protected under the First Amendment. Nevertheless, Judge Katherine Polk Failla of the Southern District of New York (SDNY) found this argument insufficient to dismiss the charges, indicating that functionalities of the code do not equate to free speech protections under the US Constitution, as reported by Coindesk.

Legal Implications for Tornado Cash and the Future of Crypto Regulations

Judge Failla’s ruling opens the door for a full trial wherein the allegations against Roman Storm will be thoroughly examined. The case raises critical questions about the legal boundaries of cryptocurrency mixers and the responsibilities of their developers. Should Storm be convicted, it could set substantial precedents for future governance and legal expectations within the crypto industry.

Simultaneously, Ethereum remains strong in the market, trading above key support levels. As of the latest updates, Ethereum trades at $2,664, holding steady above the $2,600 mark despite the legal turmoil surrounding Tornado Cash.

Binance’s former CEO, Changpeng Zhao (CZ), recently concluded his prison term and walked free on Friday, September 27, adding another layer to the current climate of crypto-related legalities.

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