Nikolas Sargeant
The US Department of Justice has confirmed it will proceed with federal criminal charges against Roman Storm, co-founder and developer of the cryptocurrency mixing service Tornado Cash, despite dropping one count from its original indictment.
While the DOJ will no longer pursue allegations that Storm operated an unlicensed money transmitting business, prosecutors remain committed to charges related to money laundering and sanctions violations, marking a critical development in this high-profile cryptocurrency legal battle.
In a letter addressed to federal Judge Katherine Polk Failla, acting Manhattan US Attorney Jay Clayton stated that the prosecution aligns with policy guidelines outlined in the Deputy Attorney General's April 7, 2025 memorandum.
DOJ Refines Charges While Maintaining Core Criminal Allegations
The Justice Department has agreed to dismiss accusations that Storm failed to comply with money transmitter registration requirements. However, prosecutors will continue pursuing the more serious allegation that Storm knowingly transmitted funds linked to criminal activities.
This selective prosecution approach presents an interesting contrast to the apparent policy shift suggested in the April 7 memo, which indicated greater focus on pursuing individuals using crypto platforms for illegal purposes rather than targeting the platforms or their developers directly.
The continued prosecution comes despite the more crypto-friendly stance associated with the current administration, suggesting that certain cases remain priorities for federal prosecutors regardless of broader policy trends.
July Trial Set as Legal Battle Over Crypto Mixer Continues
Storm is scheduled to face trial in a Manhattan federal courtroom on July 14, 2025. Prosecutors allege he used Tornado Cash to obscure the origins and destinations of cryptocurrency transactions, facilitating illicit transfers, money laundering, and sanctions evasion.
The controversial mixing service was sanctioned by the US Treasury in 2022 for allegedly processing over $7 billion in illicit transactions. However, in March 2023, Treasury quietly removed Tornado Cash from its sanctions list following a federal appeals court ruling that determined immutable smart contracts cannot be sanctioned as property.
This case follows the legal proceedings against Storm's co-developer, Alexey Pertsev, who was sentenced to more than five years imprisonment by a Dutch court last year before being released under electronic monitoring in February pending appeal.
