Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
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The US Department of Justice (DOJ) has confirmed that it will proceed with federal criminal charges against Roman Storm, the developer and co-founder of the crypto mixing service Tornado Cash.
This decision comes despite some adjustments to the charges. Under the adjustments, the DOJ will continue with the charges related to money laundering and sanctions evasion. But it will drop one part involving accusations that Storm ran an unlicensed money transmitting business.
In a letter to federal court Judge Katherine Polk Failla, Jay Clayton, acting US Attorney for Manhattan, affirmed that the DOJ’s prosecution aligns with the policies outlined in the April 7, 2025 memo from the Deputy Attorney General.
DOJ Drops One Charge Against Storm but Moves Forward with Criminal Allegations
The original charge against Storm for failing to comply with money transmitting registration requirements will be dismissed. However, the DOJ will press ahead with the allegation that Storm transmitted funds knowing they were linked to criminal activity.
The DOJ’s decision to continue with this case contrasts with a recent shift in its approach towards crypto tools. The April 7 memo memo suggested a greater focus on pursuing individuals using crypto platforms for illegal activities, rather than prosecuting the platforms themselves.
This move signals a potential policy shift under the more crypto-friendly Trump administration, though the DOJ has indicated no intent to drop the charges against Storm.
Legal Battle Over Tornado Cash Intensifies with Storm’s Upcoming Trial
Storm will face trial in a Manhattan federal courtroom on July 14, 2025. Prosecutors claim he used Tornado Cash to obscure crypto transaction origins and destinations. This mixer allegedly helped facilitate illicit transactions, launder money and evade US sanctions.
Tornado Cash was sanctioned by the US Treasury in 2022. This was due to its reported involvement in facilitating over $7b in illicit transactions.
However, in March 2023, the US Treasury quietly removed Tornado Cash from the sanctions list. This decision followed a federal appeals court ruling that immutable smart contracts cannot be sanctioned as property.
This case follows legal action against Storm’s co-developer, Alexey Pertsev, who was sentenced to over five years in prison by a Dutch court last year. He was released under electronic monitoring in February pending an appeal.
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