Keri Axel

@BillHughesDC yes, this is exactly SDNY’s position

But if you are aware - however you become so - then you may be prosecuted. The Tornado Cash Doctrine.

great summary of why developers can take no comfort from the Acting AG’s comments yesterday. As I told @EleanorTerrett, DOJ cannot credibly claim it has ‘changed the game’ while still prosecuting @rstormsf. SDNY’s theories are so broad that any developer of non custodial software could be held criminally liable for its users’ bad acts.

🔗Full story: therage.co/blanche-vegas/

@cialoneCodes Thanks for coming and spreading the word. Good summary. Definitely agree that if it "sticks, every developer who ships a neutral, open-source tool becomes responsible for whatever criminals do with it later."

Yes, it is clear that, in the prosecution's view, knowledge of third party misuse + continued protocol support = criminal liability. The community should understand that the 1960 charge is not the only thing to be concerned about here. Under their theories, any developer can be charged with money laundering or sanctions violations based on a third party's misuse. And its irrelevant to the gov't that the software is permissionless and non-custodial.

What we heard from the government at today's hearing was truly alarming. Their theory is so expansive. Once criminals use a noncustodial tool at sufficient (though unspecified) scale, even otherwise lawful activity can be recast as illegitimate. At that point, a developer's every act to support software related to that tool can be treated as furthering criminal activity. This is why legal protections for developers need to be written into law.

“The prosecutors had asked us about dates for a retrial sometime ago, but then did not proceed with a request.” Keri Curtis Axel explains that in the DOJ case against Tornado Cash developer Roman Storm, prosecutors previously floated a retrial but did not move forward at the time.

@WaymakerLLP is happy to again host the cocktail bar at the @coincenter dinner tomorrow. Always a great party, it should be special this year, as we celebrate CoinCenter’s big Tornado Cash sanctions win and excellent legislative advocacy! we’ve got wins to celebrate too! 😉

@innercitypress thanks for all your coverage. I’m happy to be tagged here @AxelKeri

AUSA: Roman Storm wrote, Americans are generally too lazy to verify anything... He should be detained, as a risk of flight. Storm's lawyer Axel: There is a five year cap on Count 2, not significant. Judge: I do not thing he is a risk, convicted on only 1 count

OK- now in US v. Roman Storm, verdict watch Day 4 - now post-pedicure of juror, Qs of wallet(s) matthewrussellleeicp.substack.com/p/extra-analys… Unsealing bid storage.courtlistener.com/recap/gov.usco… Inner City Press 1st book on the case amazon.com/dp/B0FHXTCNCR [2d soon] & will live tweet, thread below

@frankcorva @EleanorTerrett @TornadoCash On behalf of the legal team for @rstormsf, we appreciate all of your efforts. Your commitment and professionalism was impressive. You were there even on the slow days. Thank you for shining a bright light on the SDNY proceedings. Can @brianeklein and I get a shout out too?

.@EleanorTerrett just gave some shout outs, but I’d like to take a moment to do the same. There were some truly incredible journalists in (and out of) the courtroom covering the @TornadoCash trial, and they deserve to be recognized. I’ll start with Eleanor, an absolute legend of a journalist and the voice of @CryptoAmerica_. I’ve been following her work forever, and it was an honor to sit beside her in the courtroom. (I still get a little bit of a Wayne’s World “We’re not worthy” feeling when I’m around Eleanor. She’s such a boss.) Also, major shout out to @davidzmorris of @theragetech. David is such a thoughtful journalist, and, for the past four weeks, has been hellbent on providing the wider world with as many details on this trial as possible - which has been no easy feat. When you combine his work with the analytical work that @L0laL33tz has produced on and around this trial, it’s hard to argue that The Rage hasn’t set the standard for what this sort of coverage should look like. Major round of applause 👏 @cheyenneligon of @CoinDesk is another absolute pro. Her coverage was thoughtful and intricate. I loved reading her work as this trial proceeded, as it helped me to pick up on certain dynamics at play that I wasn’t quite catching on my own. (I’m new to covering trials.) Thank you, Cheyenne! It was also an absolute pleasure to get to know @aleks_gilbert of @dlnews. Aleks went deep on a number of articles he wrote on the trial, some of which were helpful to me in my reporting. He also did his job diligently despite the fact that he got hurt playing basketball some time toward the middle of the trial and still came to the latter half of the trial despite being on crutches. Truly remarkable dedication. And, finally, thank you to @innercitypress for keeping me up to date on what was happening in the courtroom during the days and hours I couldn’t be there! - For as much as I’m relieved that this trial has come to an end, I will miss feeling the sense of camaraderie that developed between us journalists who showed up from the start of the trial until its conclusion. We all helped one another stay up to date on what was happening and did our best to work synergistically to make sure we offered everyone following our work the best coverage possible. And I know that everyone I’ve mentioned in this post also wanted to be in the courtroom as much as possible to show support to @rstormsf. On that last note, I’ll ask that you, too, support Roman by donating to his legal defense fund to help him finance the appeal process (link in comments). The fight for our rights continues. Let’s be sure not to forget Roman, who’s bearing the heaviest burden for all of us right now.

@EleanorTerrett @rstormsf thanks Eleanor. Proud to represent @rstormsf from Day 1, through trial, and keeping him out on bond today. Yes there is a lot of fight left in this case and we stand with Roman all the way. Looking forward to breaking the trial down with you soon!

🚨NEW: Some initial confusion over the status of the third count, which the jury could not unanimously decide. But to clarify: @rstormsf has been found guilty on one charge: conspiracy to operate an unlicensed money transmitting business (aka “the 1960 charge”), which, according to Storm’s lawyer Keri Axel, carries a maximum sentence of five years. The jury was hung on the other two counts: money laundering and sanctions violations. Judge Failla denied the government’s motion to remand him to jail, stating: “There is a lot of fighting left in this case before sentencing, and I think Mr. Storm will stay to fight it.” As the government team exited the courtroom, I asked AUSA Rehn for comment. He seemed caught off guard (may not have realized I was press), stammered, and said: “No comment right now, but we will… yeah…” before walking out the door. Storm remained in the courtroom, conferring with his legal team. His emotions are hard to read as he’s remained pretty stoic throughout this whole trial. I’ll try to get a comment from him as well. Back in again…

@valkenburgh thanks Peter! We will appeal and, as counsel to @rstormsf, we always appreciate your help!

Coin Center’s Seven Takeaways from the Storm Verdict: ▪️ 1. The sole conviction—unlicensed money transmission (18 U.S.C. § 1960)—turns mainly on legal/regulatory interpretation (“does this count as money transmission?”), not jury fact-finding. ▪️ 2. The court, at the motion-to-dismiss stage, discounted FinCEN’s stated guidance on what counts as “money transmission” in crypto and treated the category as broader than “control of customer funds.” ▪️ 3. With “money transmission” defined that broadly, the jury’s room to decide facts was narrow; the court’s interpretation largely dictated the outcome. ▪️ 4. DOJ’s prior “end regulation by prosecution” memo didn’t fully resolve §1960 issues left things open for continued prosecution; the DOJ dropped the failure-to-register theory but not the “knowingly transmitting criminal funds” theory. Coin Center’s view: both hinge on “transmitting” and are improper against developers excluded by FinCEN guidance. ▪️ 5. The BRCA (Blockchain Regulatory Certainty Act), now attached to CLARITY and passed by the House, would confirm that non-controlling developers aren’t money transmitters. It can’t help Roman retroactively, but the Senate should pass it in upcoming market-structure debates. ▪️ 6. Coin Center fellow Michael Lewellen is suing DOJ for a declaration that publishing/maintaining his software isn’t unlicensed money transmission. Coin Center will continue supporting this effort to correct the legal interpretation. ▪️ 7. Coin Center is sorry Roman faces sentencing on a theory that contradicts the regulator’s guidance. He should appeal the denial of his motion to dismiss; Coin Center will assist however possible.

@ohaiom thanks Jason. On behalf of Team Storm, we agree!

Roman Storm's conviction for operating an unlicensed money transmission business is dangerous for all defi developers. It's also just wrong as a matter of law, and (I think) it will be overturned.

Here is Judge Failla in the Storm case this afternoon: "I think the stability of the verdict is very much in play... I think the 1960 [charge] is perhaps the most interesting of the legal issues..." This is absolutely NOT over - the government's overreach here will not stand.

My take: 1) This messy verdict speaks volumes. Even after weeks of testimony and underhanded government tactics, they could not convince 12 citizens that privacy software is money laundering. 2) The 1960 guilty verdict is plainly contrary to law -- but it's hard to blame the jury where the government so thoroughly distorted truth. It is imperative that DOJ clarify 1960 so this never happens again. 3) SDNY should not be permitted to retry the deadlocked charges. Most importantly, we stand with @rstormsf on all the next steps here.

@TrustlessState It's good on sanctions and money laundering, but a travesty of justice on Section 1960. This is the key issue we've been fighting about all along, that the developer of a non-custodial protocol is not (and cannot be) engaged in money transmission. The appeal will be critical.

The Government's forensic accounting reports presented as evidence of Storm's financial motives do not add up. “You testified that you were trained by the FBI?” Full story by @davidzmorris 👇

This part: "Storm is not a banker, a broker, or a criminal mastermind. He’s a software developer. Charging him with running a money-laundering enterprise is as absurd as arresting Tim Cook, the CEO of Apple, for one of the likely thousands of crimes committed each day on iPhones. Criminal law demands more than clever theories; it requires fair notice, due process, and actual culpability. Prosecutors are not permitted to peer at a previously-clear federal law and conjure an indictment from between the lines." @katiebiber @matthuang

SEC is ending its campaign of regulation by enforcement against the crypto industry. That’s great. But DOJ hasn’t said a word about its campaign of regulation by *criminal indictment* against crypto developers. DOJ must dismiss its Section 1960 charges in Tornado and Samourai.

This is the moment of greatest opportunity for crypto: - regulatory environment that supports innovation - tech that lets builders create world-class apps - macro trends that demand decentralization - tradfi interest that signals major adoption Stop trading and pay attention.

@NicoleShanahan pp

Shut down the SDNY office. Fire anyone obstructing justice for victims. Release ALL of the REAL Epstein File—everything, unredacted. No more BS. President Trump, AG Bondi, and FBI Dir Kash are working hard to uncover the truth. Now it’s time to deliver for the American people.