Sens. Lummis, Wyden oppose Justice Department position on Tornado cash payments
United States Senators Cynthia Lammis and Ron Wyden have sent a letter to Attorney General Merrick Garland expressing concern over the Department of Justice's (DOJ') interpretation of the money transfer authorization.
As Binance's editors point out in a footnote, this definition is being applied to the indictment of Roman Storm, the co-founder of crypto mixer Tornado Cash, accused of running an unauthorized money transfer operation and other serious crimes.
The Bank Secrecy Act and the Treasury Department's Financial Crimes Enforcement Network (FinCEN) clearly define money laundering as the receipt and transfer of money and other forms of value. Non-custodial crypto service providers do not meet the established definition of money transmitters, and the DOJ is acting contrary to the Treasury Department's policy enforcement, the senators said. In their words:
“Bitcoins always have a clear unilateral owner at no point in time [transfer] There is uncertainty as to where ownership of the transaction process resides. […] Security and control are therefore the logical cornerstones on which ‘receipt and transfer' occurs on Bitcoin and other crypto networks.
FinCen is the “Chief Interpretative Authority” of the Money Transfer Registration Requirements. The DOJ's proposed requirement could apply to a variety of services from Internet service providers that process bank transfers to the post office, the senators wrote.
Crypto advocacy groups filed a similar argument with the Southern District Court of New York in April.
Prosecutors filed a motion to dismiss the lawsuit in March, arguing that Tornado Cash did not meet the definition of a money transfer business and failed to prevent sanctioned groups from using the service because it was “inflexible.”
Related: DOJ Tornado Cash Arguments Show ‘Clear Disregard for Privacy' – Attorney
Prosecutors said Storm was responsible for operating the service and developing software to aid crime. Tornado Cash “specializes in the transportation and transfer of proceeds of crime known to the accused,” he said.
Storm was indicted in August on charges of violating sanctions and facilitating money laundering. He faces up to 45 years in prison. He has pleaded not guilty to the charges and is free on $2 million bail with travel restrictions.
Magazine: Tornado Cash 2.0: The Race to Build Safe and Legal Coin Mixers
