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DOJ to press on with criminal charges against Tornado Cash developer Roman Storm

The US Department of Justice does not intend to drop its federal criminal charges against Tornado Cash developer and co-founder Roman Storm, Decrypt reported on May 15, citing sources within the DOJ.

The DOJ’s decision to proceed comes despite an internal memo circulated last month signaling a potential shift in how the agency handles cases involving crypto mixing services.

Storm will stand trial on federal charges, including money laundering and sanctions evasion.

Criminal charges

Federal prosecutors allege that Storm conspired to launder funds, evade US sanctions, and operate an unlicensed money transmitting business through Tornado Cash, an Ethereum-based coin mixer designed to obscure the origin and destination of crypto transactions.

Storm’s trial is set to begin in a Manhattan federal courtroom in less than two months. The most recent court filings show that prosecutors have agreed to drop one portion of the charge related to operating an unlicensed money transmitting business, acknowledging inconsistencies with federal guidelines.

The Financial Crimes Enforcement Network (FinCEN) clarified in 2019 that “non-custodial entities” such as Tornado Cash are not classified as money transmitters. The DOJ’s partial rollback highlights a tension between law enforcement and developers of decentralized software.

Amanda Tuminelli, executive director of the DeFi Education Fund, told Decrypt that technologists building neutral privacy tools should not be held to “unreasonable criminal standards.”

Her comments echo the sentiment prevalent among industry leaders, including Ethereum co-founder Vitalik Buterin, who continues to support Storm.

Case to continue despite shifting stance

The DOJ’s reaffirmation of charges against Storm follows the leak of an internal memo indicating the agency would now prioritize pursuing individuals using crypto tools for criminal purposes rather than prosecuting the platforms themselves.

The shift has been interpreted as a sign of evolving policy under the more crypto-friendly Trump administration. However, the DOJ does not intend to drop its charges against Storm.

In September, US District Judge Katherine Polk Failla denied his motion to dismiss, ruling that the use of computer code to facilitate money laundering is not protected under the First Amendment, despite Storm’s claims of free speech protections for his code.

The US Treasury sanctioned Tornado Cash in 2022, claiming that the protocol had facilitated more than $7 billion in illicit transactions.

However, in March, the Office of Foreign Assets Control quietly removed Tornado Cash from its sanctions list following a federal appeals court decision that found immutable smart contracts cannot be sanctioned as property.

Storm’s co-developer, Alexey Pertsev, was sentenced to over five years in prison by a Dutch court last year but was released under electronic monitoring in February pending an appeal.

The DOJ, Storm, and his attorneys did not immediately respond to requests for comment as of press time.

The post DOJ to press on with criminal charges against Tornado Cash developer Roman Storm appeared first on CryptoSlate.

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