Two United States Senators, Cynthia Lummis and Ron Wyden, have expressed their concerns to Attorney General Merrick Garland regarding the Justice Department’s interpretation of money transmission licensing. They specifically mention the case against Roman Storm, the co-founder of crypto mixer Tornado Cash, who has been charged with operating an unlicensed money transmission operation and other serious crimes.
The Senators argue that the Bank Secrecy Act and the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) clearly define money transmission as the acceptance and transmission of currency and other forms of value. They state that noncustodial crypto service providers do not meet this definition and accuse the DOJ of contradicting the Treasury’s guidelines, creating confusion in policy enforcement.
The Senators highlight that FinCEN is the primary authority for interpreting money transmission registration requirements. They warn that the DOJ’s suggested standard could be applied to various services, such as internet service providers that process bank transfers or even the post office.
In April, crypto advocacy groups filed a joint amicus brief with the Southern New York District Court, presenting a similar argument to support Storm’s case.
Storm’s lawyers filed a motion to dismiss the charges against him in March, claiming that Tornado Cash did not meet the definition of a money transmission business. They also argued that Storm could not prevent sanctioned groups from using the service due to its immutable nature.
Prosecutors countered by holding Storm accountable for operating the service and alleging that he designed software to facilitate criminal activities. They claimed that Tornado Cash was involved in the transportation and transmission of funds derived from criminal offenses.
Storm was arrested in August on charges of sanctions violations, facilitating money laundering, and unlicensed money transmission. He faces a potential prison sentence of up to 45 years. Storm has pleaded not guilty to the charges and is currently out on a $2 million bail with travel restrictions.
The article also mentions the race to build safe and legal coin mixers, including Tornado Cash 2.0.