The United States Department of Justice (DOJ) has responded forcefully to the Motion to Dismiss (MTD) filed by Tornado Cash co-founder Roman Semenov. Semenov, who was arrested and charged with various offenses related to his involvement with the cryptocurrency mixer Tornado Cash, had sought to have the charges against him dismissed.

Semenov's Legal Team Argues Non-Involvement

In his MTD, Semenov claimed that the authorities had no grounds to charge him, as he was only involved in the design of Tornado Cash's code but not responsible for how it was used. Semenov also stated that he had handed over the management of the platform's smart contracts long before the alleged criminal activities occurred, and therefore should not be held accountable.

DOJ Refutes Semenov's Claims

However, the DOJ's 111-page response suggests that Semenov's request for dismissal cannot be considered. The regulator has analyzed why Semenov should be held responsible for the alleged crimes, arguing that he played an active role in maintaining Tornado Cash's website to ensure its continued operation. The DOJ also accused Semenov and his executives of developing systems that helped criminals maintain anonymity on the platform, despite the changes made to exclude sanctioned addresses.

Crypto Mixers and Criminal Activity

Crypto mixers, like Tornado Cash, are designed to make transactions untraceable and provide anonymity. However, the exploitation of Tornado Cash by bad actors, such as the North Korean hacking group Lazarus, to conceal the origin of stolen funds, led to the U.S. DOJ taking enforcement action in 2022.

Semenov's Fate Hangs in the Balance

The outcome of Semenov's ability to provide a convincing response to the DOJ's allegations will determine his future. He is facing one count of conspiracy to commit money laundering and one count of conspiracy to violate the International Economic Emergency Powers Act, each carrying a maximum sentence of 20 years in prison.