The venture capital firm Paradigm filed an amicus brief in support of the Tornado Cash co-founder Roman Storm, which focuses on the jury needs to be properly briefed in the sense of law what the operation of a business is running out of money.
The jury needs the full context of law
In its amicus brief, filed in a New York district court on June 13, Paradigma Arguments That the court must ensure that the jury understands that For the storm found guiltyThe persecution must prove that he deliberately runs a business sending money.
This includes charging fees, knowing that funds on public names, deliberately handle specific proceeds that are said to be criminal, and the preservation or control of funds sent or transferred.
A short amicus is Filed by a party that is not directly involved in a court case but has an interest in the outcome and is expected to give the court advice or other perspective.
Tornado Cash is a non-custodial crypto mixing protocol;;;;;;;;;;;;;;;;;;;;;;; Those who develop do not hold or control funds. The New York US attorney’s office Arguments That storm conspired to run the crypto mixing service as an unlicensed money transmitter.
Software developers are not those who send money
Katie Biber, Chief Legal Officer of Paradigm, and Gina Moon, the company’s general advice, Says In a blog post on Tuesday that the prosecution argument was “contrary to the simple text of the law, the clear guidance of Fincen, and the decades of law of the case.
Biber and Moon argue that under former President Obama, the US Treasury Department Found In 2014 the software development did not form an acceptance and delivery of value.
They also argued that in 2019, the department Found Total independent crypto control of users is a factor in determining whether a mediator is a currency transmitter.
“This charge is allowed to proceed with the risks of letting unlucky prosecutors change the clear meaning of criminal laws-and threaten daily citizens with imprisonment even as they follow the widely deleted and accepted regulatory guidance,” they said.
The US Roman Storm and fellow co-founder Roman Semenov will be charged In August 2023, they were accused of helping the launder more than $ 1 billion in crypto by Tornado Cash.
A guilty verdict can also hurt the change
Biber and Moon said that the “stakes of this matter were high” because if the storm was found guilty, it could aggravate the change and development of software in Crypto and Fintech.
At the same time, they said it could have Ripple effects on wider open resources, AI and technology communities because software developers can perform responsibility for how their products are used.
Related: The Ethereum Foundation has pledged $ 500k to the Roman Storm defense
“It’s as absurd as prosecution a television manufacturer for sharing state secrets on-air, leather purse workers for purses holding stolen cash, or apples for conspiracy formed by iPhone talks,” said Biber and Moon.
Expected to begin the trial on July 14. A conspiracy to operate an unlicensed business sending The charge fell on May 15 After the Department of Justice released an April memo saying the agency would not persecute crypto mixers such as Tornado Cash for users’ activities.
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