DOJ Rejects Tornado Cash Founders’ Latest Motion

The Department of Justice is opposing the Tornado Cash founders’ latest motion to dismiss the case against them.

According to the DOJ, Tornado Cash wasn’t just operating a mixer pool—it was directly involved in an enterprise.

In other words, the DOJ is claiming that Tornado Cash does not qualify as a money transmitter service. Attorney Joe Carlasare broke down the DOJ’s argument:

“This is at the core of the Government’s theory regarding control of funds. They argue that, in Tornado Cash and in Whirlpool in the case of Samourai, a user doesn’t maintain control of their Bitcoin when it is commingled into pools.

As a result, if an entity is responsible for providing the pooling feature, it is engaging in transfer of funds EVEN IF it never had control of the Bitcoin.”

This is at the core of the Government’s theory regarding control of funds. They argue that, in tornado cash and in whirlpool in the case of Samourai, a user doesn’t maintain control of their Bitcoin when it is commingled into pools.

As a result, if an entity is responsible for… pic.twitter.com/VgMlj76BEM

— Joe Carlasare (@JoeCarlasare) April 29, 2024

Daily Coin provided more of the prosecution’s allegations against Tornado Cash:

“The Indictment clearly alleges that the Tornado Cash service was a commercial enterprise carried on for profit or financial gain and that the defendant himself profited from its operation through his control, with others, of key components of the integrated Tornado Cash service.”

One privacy advocate warned that the ramifications from this case could be widespread:

“They won’t stop with “mixers,” they’re coming for self-custody too. While this government response is not yet enshrined in law or precedent, it paints a much clearer picture of how the state views not only the place of privacy tools, but even that of self-custodial wallet providers moving forward.”

They won't stop with "mixers," they're coming for self-custody too ‼️

While this government response is not yet enshrined in law or precedent, it paints a much clearer picture of how the state views not only the place of privacy tools, but even that of self-custodial wallet… https://t.co/gjTRAsKpfa

— Seth For Privacy | Activate LNHANCE (@sethforprivacy) April 27, 2024

Bein Crypto added:

Due to the severity of these allegations, the authorities said that the jury should determine the nature of Tornado Cash’s service.

It further argued against Storm’s attempt to dismiss the indictment by presenting his version of the service’s operation.

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