A coalition of 34 crypto corporations and advocacy teams is urging Congress to push again towards what they name an “unprecedented and overly expansive” authorized interpretation utilized by the US Division of Justice (DOJ) in its case towards the builders of crypto mixer Twister Money.
In a letter dated March 26, the group—led by the DeFi Schooling Fund and co-signed by main trade gamers together with Coinbase and Kraken—warned lawmakers that the DOJ’s present stance might criminalize almost all blockchain software program builders.
The letter was despatched to key committees in each the Home and Senate, together with the Senate Banking Committee and Home Monetary Providers Committee.
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DOJ’s Twister Money Case Threatens US Crypto Growth, Business Coalition Warns
The coalition argues that the DOJ’s authorized technique, first launched in its August 2023 indictment of Twister Money builders Roman Storm and Roman Semenov, poses a risk to the complete digital asset improvement ecosystem in america.
Storm, who has pleaded not responsible and is at present out on bail, is searching for to have the fees dismissed. Semenov, a Russian nationwide, stays at massive.
The DOJ has filed comparable prices towards the founders of Samourai Pockets, who additionally face cash laundering allegations and have pleaded not responsible.
Central to the coalition’s grievance is the DOJ’s interpretation of what constitutes a “cash transmitting enterprise.” The letter factors to 2 U.S. authorized codes—Title 31 Part 5330 and Title 18 Part 1960—that outline and criminalize unlicensed cash transmission.
It additionally references 2019 steerage from the Monetary Crimes Enforcement Community (FinCEN), which clarified that software program builders who don’t management person funds should not thought of cash transmitters.
NEW: As we speak, the DeFi Schooling Fund is proud to publish a coalition letter of trade leaders & advocates calling on Congress to appropriate, what in our collective view, is the DOJ’s harmful misinterpretation of cash transmission legal guidelines.
A thread
https://t.co/ZbcifAzbj8 pic.twitter.com/AqhHDCjGc3
— DeFi Schooling Fund (@fund_defi) March 26, 2025
Nevertheless, the DOJ seems to have dismissed these distinctions, making use of its personal interpretation to construct instances towards non-custodial builders.
The outcome, the coalition claims, is a authorized contradiction between FinCEN and the DOJ, which places builders in an unsure and probably perilous place.
“If left unaddressed, the DOJ’s method might prolong felony legal responsibility to software program builders who by no means deal with buyer funds,” the letter warned. “This is able to considerably chill innovation and improvement within the U.S.”
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U.S. Treasury: No Closing Ruling Wanted After Twister Money Faraway from Sanctions Checklist
Earlier this week, the U.S. Treasury Division acknowledged that no additional court docket motion is required within the ongoing lawsuit over its 2022 sanctions on crypto mixer Twister Money.
The Treasury’s Workplace of International Belongings Management (OFAC) initially blacklisted the platform, alleging it was utilized by North Korea’s Lazarus Group to launder illicit funds. In response, six customers, backed by Coinbase, sued the division, claiming the sanctions have been illegal.
On March 21, the Treasury eliminated Twister Money and its associated sensible contracts from the sanctions listing, asserting in a court docket submitting that the case is now moot.
Nevertheless, Coinbase’s Chief Authorized Officer, Paul Grewal, disagreed, arguing that delisting the platform doesn’t resolve the authorized query on the coronary heart of the lawsuit.
Energy doesn’t recede voluntarily. It is gasps and it gasps till it now not can. @USTreasury filed yet one more late Friday pleading towards Twister Money. After grudgingly delisting TC, they now declare they’ve mooted any want for a remaining court docket judgment. However that is not the legislation,… pic.twitter.com/Je8KD51X0q
— paulgrewal.eth (@iampaulgrewal) March 23, 2025
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Key Takeaways
A coalition of 34 crypto corporations is urging Congress to oppose the DOJ’s interpretation of cash transmission legal guidelines used within the Twister Money case.
The group argues the DOJ’s stance might criminalize non-custodial software program builders and threaten blockchain innovation within the US
Regardless of the Treasury eradicating Twister Money from the sanctions listing, Coinbase insists the authorized points on the core of the case stay unresolved.
The submit Crypto Companies Urge Congress to Problem DOJ’s Broad Authorized Case Towards Twister Money Builders appeared first on 99Bitcoins.
