Key Takeaways
The crypto community now wants the Roman Storm charges dropped after the latest DoJ remarks. Will the government fail to defend its verdict in the appeal?
The U.S. government will no longer charge decentralized software (DeFi) developers for crimes committed by third parties on the platforms.
During a recent American Innovation Project Summit in Wyoming, Mathew Galeotti, acting head of the Department of Justice’s (DoJ) criminal division, clarified that,
“Generally, developers of neutral tools, with no criminal intent, should not be held responsible for someone else’s misuse of those tools. If a third-party’s misuse violates criminal law, that third-party should be prosecuted — not the well-intentioned developer.”
Crypto legal experts split
However, crypto leaders and legal experts were quick to point out that the remark was the very premise under which Roman Storm, founder of crypto mixer Tornado Cash, was charged.
Storm was found guilty under the U.S. Code 1960(b)(1)(c), which bans unlicensed money transmitters from handling funds from crime or intended for illegal activities.
However, in the latest guidance, Galeotti highlighted that they won’t approve such charges against developers, especially for fully decentralized protocols.
“Where the evidence shows that software is truly decentralized and solely automates peer-to-peer transactions, and where a third party does not have custody and control over user assets, new 1960(b)(1)(C) charges against the third-party will not be approved.”
So, where does that leave Roman Storm, who’s facing up to 5 years in jail? Well, that was a question posed by top crypto legal experts.
For his part, Jake Chervinsky, legal chief at crypto VC Variant Fund, stated that the case against Storm should be dropped if based on the latest DoJ stance.
“Roman Storm was just convicted on this exact charge under this exact circumstance. Justice for Roman means dropping the case.”
Source: X
Coinbase’s legal chief, Paul Grewal, also echoed a similar stance. Notably, Storm was charged earlier in the month, and the community has been pushing for an appeal.
Given the latest remark by a high-ranking DoJ official, whether the government will defend its verdict in the appeal remains to be seen.
