{"id":19345,"date":"2025-03-27T11:17:19","date_gmt":"2025-03-27T11:17:19","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=19345"},"modified":"2025-03-27T11:17:19","modified_gmt":"2025-03-27T11:17:19","slug":"crypto-firms-urge-congress-to-challenge-dojs-broad-legal-case-against-tornado-cash-developers","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=19345","title":{"rendered":"Crypto Firms Urge Congress to Challenge DOJ\u2019s Broad Legal Case Against Tornado Cash Developers"},"content":{"rendered":"<div>\n<p><span data-preserver-spaces=\"true\">A coalition of 34 crypto firms and advocacy groups is urging Congress to push back against what they call an<\/span><span data-preserver-spaces=\"true\"> \u201c<\/span><span data-preserver-spaces=\"true\">unprecedented and overly expansive<\/span><span data-preserver-spaces=\"true\">\u201d <\/span><span data-preserver-spaces=\"true\">legal interpretation used by the US Department of Justice (DOJ) in its case against the developers of crypto mixer Tornado Cash.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In a <a class=\"general-link\" href=\"https:\/\/www.defieducationfund.org\/_files\/ugd\/84ba66_47e9f09699414451b5a7269cb4ef96ea.pdf\" target=\"_blank\" rel=\"nofollow noopener nofollow\">letter dated March 26<\/a>, the group\u2014led by the DeFi Education Fund and co-signed by major industry players <\/span><span data-preserver-spaces=\"true\">including<\/span><span data-preserver-spaces=\"true\"> Coinbase and Kraken\u2014warned lawmakers that the <\/span><span data-preserver-spaces=\"true\">DOJ\u2019s<\/span><span data-preserver-spaces=\"true\"> current stance could criminalize nearly all blockchain software developers. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The letter was sent<\/span><span data-preserver-spaces=\"true\"> to key <\/span><span data-preserver-spaces=\"true\">committees in both the House and Senate<\/span><span data-preserver-spaces=\"true\">, including the Senate Banking Committee and House Financial Services Committee.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">EXPLORE:\u00a0<\/span><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/analysis\/crypto-forecast-best-crypto\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">10 Coins with High Returns: Crypto Forecast 2025<\/span><\/a><\/strong><\/p>\n<h2><span data-preserver-spaces=\"true\">DOJ\u2019s<\/span><span data-preserver-spaces=\"true\"> Tornado Cash Case Threatens US Crypto Development, Industry Coalition Warns<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The coalition argues that the <\/span><span data-preserver-spaces=\"true\">DOJ\u2019s<\/span><span data-preserver-spaces=\"true\"> legal strategy, first introduced in its August 2023 indictment of Tornado Cash developers Roman Storm and Roman Semenov, <\/span><span data-preserver-spaces=\"true\">poses a threat to<\/span><span data-preserver-spaces=\"true\"> the entire digital asset development ecosystem in the United States. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Storm, who has pleaded not guilty and is currently out on bail, is seeking to <\/span><span data-preserver-spaces=\"true\">have the charges dismissed<\/span><span data-preserver-spaces=\"true\">. Semenov, a Russian national, remains at large.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The DOJ has filed similar charges against the founders of Samourai Wallet, who also face money laundering allegations and have pleaded not guilty.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Central to the <\/span><span data-preserver-spaces=\"true\">coalition\u2019s<\/span><span data-preserver-spaces=\"true\"> complaint is the <\/span><span data-preserver-spaces=\"true\">DOJ\u2019s<\/span><span data-preserver-spaces=\"true\"> interpretation of what constitutes a<\/span><span data-preserver-spaces=\"true\"> \u201c<\/span><span data-preserver-spaces=\"true\">money transmitting<\/span><span data-preserver-spaces=\"true\"> business.<\/span><span data-preserver-spaces=\"true\">\u201d <\/span><span data-preserver-spaces=\"true\">The letter points to two U.S. legal codes\u2014Title 31 Section 5330 and Title 18 Section 1960\u2014that define and criminalize unlicensed money transmission. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">It also references 2019 guidance from the Financial Crimes Enforcement Network (FinCEN), which clarified that software developers who do not control user funds <\/span><span data-preserver-spaces=\"true\">are not considered<\/span><span data-preserver-spaces=\"true\"> money transmitters.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\"><img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/15.0.3\/72x72\/1f6a8.png\" alt=\"\ud83d\udea8\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\">NEW: Today, the DeFi Education Fund is proud to publish a coalition letter of industry leaders &amp; advocates calling on Congress to correct, what in our collective view, is the DOJ\u2019s dangerous misinterpretation of money transmission laws.<\/p>\n<p>A thread <img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/15.0.3\/72x72\/1f9f5.png\" alt=\"\ud83e\uddf5\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"><img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/15.0.3\/72x72\/2935.png\" alt=\"\u2935\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"><a href=\"https:\/\/t.co\/ZbcifAzbj8\" target=\"_blank\" rel=\"nofollow\">https:\/\/t.co\/ZbcifAzbj8<\/a> <a href=\"https:\/\/t.co\/AqhHDCjGc3\" target=\"_blank\" rel=\"nofollow\">pic.twitter.com\/AqhHDCjGc3<\/a><\/p>\n<p>\u2014 DeFi Education Fund (@fund_defi) <a href=\"https:\/\/twitter.com\/fund_defi\/status\/1904884463131119685?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">March 26, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span data-preserver-spaces=\"true\">However, the DOJ appears to have dismissed these distinctions, applying its <\/span><span data-preserver-spaces=\"true\">own<\/span><span data-preserver-spaces=\"true\"> interpretation to build cases against non-custodial developers.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The result, the coalition claims, is a legal contradiction between FinCEN and the DOJ, which puts developers in an uncertain and potentially perilous position.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cI<\/span><span data-preserver-spaces=\"true\">f left unaddressed, the <\/span><span data-preserver-spaces=\"true\">DOJ\u2019s<\/span><span data-preserver-spaces=\"true\"> approach could extend criminal liability to software developers who never handle customer funds,<\/span><span data-preserver-spaces=\"true\">\u201d <\/span><span data-preserver-spaces=\"true\">the letter warned.<\/span><span data-preserver-spaces=\"true\"> \u201c<\/span><span data-preserver-spaces=\"true\">This would significantly chill innovation and development in the U.S<\/span><span data-preserver-spaces=\"true\">.\u201d<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">EXPLORE:\u00a0<\/span><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/best-ai-crypto-coins\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">10 Best AI Crypto Coins to Invest in 2025<\/span><\/a><\/strong><\/p>\n<h2><span data-preserver-spaces=\"true\">U.S. Treasury: No Final Ruling Needed After Tornado Cash Removed from Sanctions List<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Earlier this week, the U.S. Treasury Department stated that no further court action <\/span><span data-preserver-spaces=\"true\">is needed<\/span><span data-preserver-spaces=\"true\"> in the ongoing lawsuit over its 2022 sanctions on crypto mixer Tornado Cash. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The <\/span><span data-preserver-spaces=\"true\">Treasury\u2019s<\/span><span data-preserver-spaces=\"true\"> Office of Foreign Assets Control (OFAC) initially <\/span><span data-preserver-spaces=\"true\">blacklisted<\/span><span data-preserver-spaces=\"true\"> the platform, alleging it was used by North <\/span><span data-preserver-spaces=\"true\">Korea\u2019s<\/span><span data-preserver-spaces=\"true\"> Lazarus Group to launder illicit funds.<\/span><span data-preserver-spaces=\"true\"> In response, six users, backed by Coinbase, sued the department, claiming the sanctions were unlawful.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">On March 21, the Treasury removed Tornado Cash and its related smart contracts from the sanctions list, asserting in a court filing that the case is now moot. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">However, <\/span><span data-preserver-spaces=\"true\">Coinbase\u2019s<\/span><span data-preserver-spaces=\"true\"> Chief Legal Officer, Paul Grewal, disagreed, arguing that delisting the platform <\/span><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/news\/us-treasury-gets-chewed-out-by-coinbase-legal-chief-over-bid-to-dismiss-tornado-cash-legal-suit\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">doesn\u2019t<\/span><span data-preserver-spaces=\"true\"> resolve the legal question<\/span><\/a><span data-preserver-spaces=\"true\"> at the heart of the lawsuit.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Power does not recede voluntarily. It&#8217;s gasps and it gasps until it no longer can.  <a href=\"https:\/\/twitter.com\/USTreasury?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">@USTreasury<\/a> filed yet another late Friday pleading against Tornado Cash. After grudgingly delisting TC, they now claim they&#8217;ve mooted any need for a final court judgment. But that&#8217;s not the law,\u2026 <a href=\"https:\/\/t.co\/Je8KD51X0q\" target=\"_blank\" rel=\"nofollow\">pic.twitter.com\/Je8KD51X0q<\/a><\/p>\n<p>\u2014 paulgrewal.eth (@iampaulgrewal) <a href=\"https:\/\/twitter.com\/iampaulgrewal\/status\/1903899877983289425?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">March 23, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><strong>DISCOVER:\u00a0<a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/best-meme-coin-icos\/\" target=\"_blank\" rel=\"noopener\">Best Meme Coin ICOs to Invest in March 2025<\/a><\/strong><\/p>\n<p><a class=\"general-link\" href=\"https:\/\/discord.gg\/B7Uk6agkqj\" target=\"_blank\" rel=\"noopener nofollow\"><b>Join The 99Bitcoins News Discord Here For The Latest Market Updates<\/b><\/a><\/p>\n<div class=\"nnbtc-key-takeaways\">\n<h3 class=\"nnbtc-key-takeaways__title\">Key Takeaways<\/h3>\n<ul class=\"nnbtc-key-takeaways__list\">\n<li class=\"nnbtc-key-takeaways__list-item\">\n        <span data-preserver-spaces=\"true\">A coalition of 34 crypto firms is urging Congress to oppose the <\/span><span data-preserver-spaces=\"true\">DOJ\u2019s<\/span><span data-preserver-spaces=\"true\"> interpretation of money transmission laws used in the Tornado Cash case.<\/span>    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        <span data-preserver-spaces=\"true\">The group argues the <\/span><span data-preserver-spaces=\"true\">DOJ\u2019s<\/span><span data-preserver-spaces=\"true\"> stance could criminalize non-custodial software developers and threaten blockchain innovation in the US<\/span>    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        <span data-preserver-spaces=\"true\">Despite the Treasury removing Tornado Cash from the sanctions list, Coinbase insists the legal issues at the <\/span><span data-preserver-spaces=\"true\">core of the case<\/span><span data-preserver-spaces=\"true\"> remain unresolved.<\/span>    <\/li>\n<\/ul><\/div>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/crypto-firms-urge-congress-to-challenge-dojs-broad-legal-case-against-tornado-cash-developers\/\">Crypto Firms Urge Congress to Challenge DOJ\u2019s Broad Legal Case Against Tornado Cash Developers<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A coalition of 34 crypto firms and advocacy groups is urging Congress to push back against what they call an \u201cunprecedented and overly expansive\u201d legal interpretation used by the US Department of Justice (DOJ) in its case against the developers of crypto mixer Tornado Cash. In a letter dated March 26, the group\u2014led by the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-19345","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/19345","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19345"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/19345\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19345"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}