# Tornado Cash indictment fails to show ‘clear violation’ of certain laws: Coin Center

**Published by:** [Masih](https://paragraph.com/@4545f/)
**Published on:** 2023-08-24
**URL:** https://paragraph.com/@4545f/tornado-cash-indictment-fails-to-show-clear-violation-of-certain-laws-coin-center

## Content

Coin Center research director Peter Van Valkenburgh argued that crypto mixer Tornado Cash is an anonymizing software provider, not a money transmitter. Crypto advocacy group Coin Center has criticized the latest indictment of two former Tornado Cash developers, arguing that the facts offered don't show any clear violations of money-transmitting-related offenses. Roman Storm and Roman Semenov were indicted by the United States Office of Foreign Asset Control on Aug. 23 for conspiring to operate an unlicensed money-transmitting business, among other charges. In a follow-up opinion piece, Coin Center research director Peter Van Valkenburgh argues that the claims in the indictment appear to run counter to guidance from the United States Financial Crimes Enforcement Network — arguing that Tornado Cash only provides the software to transmit money rather than transmitting the money itself. "The only thing the indictment claims regarding the defendants’ unlicensed money transmission is that they 'engaged in the business of transferring funds on behalf of the public' and did so without registering with FinCEN," wrote Valkenburgh. While Valkenburgh said that Tornado Cash made it easier for individuals to use the protocol’s smart contracts to transmit money, he argued it doesn’t mean that the developers were money transmitters themselves. “[But] that doesn’t somehow mean that they became transmitters merely because they provided tools that others used to transmit their own money,” Valkenburgh explained. Valkenburgh also criticized claims in the indictment suggesting that Storm and Semenov had complete control over the protocol’s smart contracts. https://cointelegraph.com/news/tornado-cash-indictment-in-conflict-with-fincen-rules

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