DOJ Proceeds with Charges Against Tornado Cash Co-founder Roman Storm, But There’s a Catch

The U.S. Department of Justice (DOJ) is proceeding with its case against Tornado Cash co-founder Roman Storm. However, prosecutors have decided to drop part of the allegation related to operating an unlicensed money transmitting business.

In 2023, Storm was charged with conspiracy to commit money laundering, sanctions violations, and operating an unlicensed money-transmitting business. Prosecutors allege that Tornado Cash was used by entities such as North Korea’s Lazarus Group to obscure the origins of stolen funds.

Storm’s legal team asserted his innocence, arguing that he had no control over the immutable smart contracts. Therefore, they claimed, he could not be held responsible for their misuse. Meanwhile, Storm’s trial is scheduled to commence on July 14, 2025, in the U.S. District Court.

DOJ’s Decision Attracts Criticism

The DOJ’s affirmation of charges against Storm follows a memo issued last month indicating a shift in its enforcement approach. The memo stated that the agency would cease pursuing litigation against mixing services, among other entities like exchanges.

It will concentrate on prosecuting individuals who cause financial harm to investors. Additionally, it will target those who use cryptocurrencies to facilitate serious criminal activities like terrorism, narcotics trafficking, and organized crime.

Industry advocates celebrated the memo as they interpreted that the DOJ is turning a new leaf under the current administration. However, the DOJ’s latest decision regarding Storm has attracted considerable criticism from industry advocates. For instance, Peter Van Valkenburgh, executive director at Coin Center, voiced his displeasure. He said he was disappointed the agency plans to pursue the other charges involving unlicensed money transmissions and money laundering.

“That part of the criminal code is ambiguous in it’s relationship to the BSA (I would say they overlap entirely unless you perversely interpret what money transmission as different from transport). The rule of lenity says that when an America’s liberty is on the line, the court must resolve that ambiguity in favor of the defendant. That charge too should be dropped,” he stated.

A year ago, a Dutch court sentenced Alexey Pertsev, another Tornado Cash developer, to 64 months in prison for money laundering. However, he was granted conditional release in February, as he prepared to pursue an appeal.