DOJ Will Proceed With Criminal Case Against Tornado Cash Developer Roman Storm

Storm faces multiple charges, including money laundering, sanctions evasion, and operating an unlicensed money transmitting business, stemming from his role in developing Tornado Cash—an Ethereum-based privacy protocol that enables users to obscure the origin and destination of crypto transactions.

Trial Set Despite DOJ Memo

Last month, an internal DOJ memo suggested that the agency might re-evaluate its approach to crypto mixing services and their developers. However, that reconsideration appears limited in scope. Prosecutors are now pressing ahead with the case, and Storm’s trial is scheduled to begin within the next two months in a Manhattan federal courtroom.

Recent court filings show that the DOJ has agreed to drop one part of the charge—specifically, the allegation that Storm operated an unlicensed money transmitting business. The decision came after legal teams pointed to inconsistencies between the charge and existing federal guidelines.

Regulatory Ambiguity Over Crypto Mixers

The move reflects growing friction between regulators and the developers of decentralized, non-custodial financial software. The Financial Crimes Enforcement Network (FinCEN) clarified in 2019 that non-custodial platforms like Tornado Cash do not meet the legal definition of a “money transmitter.”

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While this prompted the DOJ to scale back a portion of its case, it remains committed to prosecuting Storm for alleged violations related to sanctions and illicit finance.

Tornado Cash gained global attention in 2022 when it was sanctioned by the U.S. Treasury’s Office of Foreign Assets Control (OFAC), which claimed the platform was used by North Korean hacking group Lazarus to launder over $1 billion in stolen cryptocurrency.

The Bigger Picture

Storm’s case could set a precedent for how U.S. authorities treat open-source developers who build privacy tools in the crypto space. Legal experts say the trial will likely be closely watched by developers, privacy advocates, and international regulators, as it may help define the legal limits of decentralization and the responsibilities of coders under U.S. law.

If convicted, Storm could face significant prison time.

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