EddieJayonCrypto
16 May 25
The US Department of Justice will continue federal criminal charges against Tornado Cash developer Roman Storm, including money laundering and sanctions evasion. Despite an internal DOJ memo suggesting a shift toward targeting criminal users rather than platforms, prosecutors plan to try Storm in Ma...
The US Department of Justice (DOJ) remains steadfast in pursuing federal criminal charges against Roman Storm, co-founder of Tornado Cash, for alleged money laundering and sanctions evasion despite recent internal shifts in crypto enforcement policy.Federal prosecutors accuse Storm of conspiring to launder funds, evade US sanctions, and operate an unlicensed money transmitting business via Tornado Cash, a decentralized Ethereum-based coin mixer designed to obscure crypto transaction origins and destinations.Although prosecutors have dropped one charge concerning operating an unlicensed money transmitting business due to FinCEN guidelines exempting non-custodial entities like Tornado Cash, the trial is scheduled to begin soon in a Manhattan federal court.This legal stance underscores ongoing tensions between law enforcement agencies and developers of decentralized technologies, particularly around the classification and regulation of neutral privacy tools.An internal DOJ memo hinted at a strategic shift toward targeting criminal users rather than platforms themselves, signaling evolving policy; nonetheless, charges against Storm will proceed.Notably, the US Treasury sanctioned Tornado Cash in 2022, citing its role in facilitating over $7 billion in illicit transactions; however, a 2024 federal appeals court ruling led to the protocol’s removal from the sanctions list, recognizing immutable smart contracts as unsanctionable property.Roman Storm’s motion to dismiss the case on First Amendment grounds was denied by US District Judge Katherine Polk Failla, who ruled that computer code used for money laundering does not receive free speech protection.Meanwhile, Storm’s co-developer, Alexey Pertsev, was sentenced in the Netherlands but released pending appeal.The DOJ’s continuation of this case highlights the complex intersection of law, technology, and regulatory approaches amid the rapidly evolving cryptocurrency landscape.