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Roman Storm, one of the founders of Tornado Cash, is still facing federal charges, but federal prosecutors have agreed to drop one part of the case.
In a letter sent to Judge Katherine Polk Failla on May 15, acting US Attorney Jay Clayton said that one of the charges, related to operating an unlicensed money-transmitting business, would be removed.
The change follows new guidance from the Department of Justice. A memo issued on April 8 by Deputy Attorney General Todd Blanche said the agency would no longer charge crypto projects because of how others use their tools.
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As a result, prosecutors will no longer argue that Storm broke rules by failing to register as a money transmitter. But they are not dropping the accusation that he moved funds knowing they were tied to criminal activity.
The government also continues to claim that Tornado Cash helped criminals move over $1 billion in cryptocurrency. Some of that money came from the Lazarus Group, a North Korea-linked hacking team.
Storm still faces two other charges, one for being part of a money laundering scheme and another for helping to break US sanctions. Both of these charges carry a maximum sentence of 20 years in prison.
The remaining part of the dropped charge could lead to up to 5 years if proven. Additionally, Storm's trial is set to begin on July 14.
Meanwhile, Changpeng "CZ" Zhao confirmed during the Farokh Radio podcast on May 6 that he asked US President Donald Trump for a pardon. What did he say? Read the full story.
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