great summary of why developers can take no comfort from the Acting AG’s comments yesterday. As I told @EleanorTerrett, DOJ cannot credibly claim it has ‘changed the game’ while still prosecuting @rstormsf. SDNY’s theories are so broad that any developer of non custodial software could be held criminally liable for its users’ bad acts.
@cialoneCodes Thanks for coming and spreading the word. Good summary. Definitely agree that if it "sticks, every developer who ships a neutral, open-source tool becomes responsible for whatever criminals do with it later."
Yes, it is clear that, in the prosecution's view, knowledge of third party misuse + continued protocol support = criminal liability. The community should understand that the 1960 charge is not the only thing to be concerned about here. Under their theories, any developer can be charged with money laundering or sanctions violations based on a third party's misuse. And its irrelevant to the gov't that the software is permissionless and non-custodial.
“The prosecutors had asked us about dates for a retrial sometime ago, but then did not proceed with a request.”
Keri Curtis Axel explains that in the DOJ case against Tornado Cash developer Roman Storm, prosecutors previously floated a retrial but did not move forward at the time.
@WaymakerLLP is happy to again host the cocktail bar at the @coincenter dinner tomorrow. Always a great party, it should be special this year, as we celebrate CoinCenter’s big Tornado Cash sanctions win and excellent legislative advocacy! we’ve got wins to celebrate too! 😉
@frankcorva@EleanorTerrett@TornadoCash On behalf of the legal team for @rstormsf, we appreciate all of your efforts. Your commitment and professionalism was impressive. You were there even on the slow days. Thank you for shining a bright light on the SDNY proceedings. Can @brianeklein and I get a shout out too?
@EleanorTerrett@rstormsf thanks Eleanor. Proud to represent @rstormsf from Day 1, through trial, and keeping him out on bond today. Yes there is a lot of fight left in this case and we stand with Roman all the way. Looking forward to breaking the trial down with you soon!
Here is Judge Failla in the Storm case this afternoon:
"I think the stability of the verdict is very much in play... I think the 1960 [charge] is perhaps the most interesting of the legal issues..."
This is absolutely NOT over - the government's overreach here will not stand.
My take:
1) This messy verdict speaks volumes. Even after weeks of testimony and underhanded government tactics, they could not convince 12 citizens that privacy software is money laundering.
2) The 1960 guilty verdict is plainly contrary to law -- but it's hard to blame the jury where the government so thoroughly distorted truth. It is imperative that DOJ clarify 1960 so this never happens again.
3) SDNY should not be permitted to retry the deadlocked charges.
Most importantly, we stand with @rstormsf on all the next steps here.
@TrustlessState It's good on sanctions and money laundering, but a travesty of justice on Section 1960. This is the key issue we've been fighting about all along, that the developer of a non-custodial protocol is not (and cannot be) engaged in money transmission. The appeal will be critical.
The Government's forensic accounting reports presented as evidence of Storm's financial motives do not add up.
“You testified that you were trained by the FBI?”
Full story by @davidzmorris 👇
This part: "Storm is not a banker, a broker, or a criminal mastermind. He’s a software developer. Charging him with running a money-laundering enterprise is as absurd as arresting Tim Cook, the CEO of Apple, for one of the likely thousands of crimes committed each day on iPhones. Criminal law demands more than clever theories; it requires fair notice, due process, and actual culpability. Prosecutors are not permitted to peer at a previously-clear federal law and conjure an indictment from between the lines." @katiebiber@matthuang
SEC is ending its campaign of regulation by enforcement against the crypto industry. That’s great.
But DOJ hasn’t said a word about its campaign of regulation by *criminal indictment* against crypto developers.
DOJ must dismiss its Section 1960 charges in Tornado and Samourai.
This is the moment of greatest opportunity for crypto:
- regulatory environment that supports innovation
- tech that lets builders create world-class apps
- macro trends that demand decentralization
- tradfi interest that signals major adoption
Stop trading and pay attention.