U.S Justice Department Files to Retry Tornado Cash Co-Founder Roman Storm

The U.S. Department of Justice is moving forward with plans to retry Tornado Cash co-founder Roman Storm on two significant charges after a partial mistrial last year. Storm was convicted of conspiracy to operate an unlicensed money transmitting business.

The jury, however, could not reach a verdict on the conspiracy to commit money laundering and conspiracy to violate sanctions charges. Recent court filings confirm the Department of Justice’s commitment to pursuing the case to a logical conclusion.

Case Background 

Roman Storm, along with co-founder Roman Semenov, launched Tornado Cash in 2019 as a decentralized protocol on the Ethereum blockchain. The platform uses smart contracts to hide transactions and enhance user privacy. However, U.S. authorities allege that Tornado Cash facilitated the transfer of over $1 billion in illicit funds.

They allege that the protocol shielded hacking activities linked to the North Korea-affiliated Lazarus Group. In August 2023, the Department of Justice (DOJ) indicted Storm on three counts. These included money laundering, operating an unlicensed money-transmitting business, and violating sanctions.

Storm pleaded not guilty, arguing that he created open-source code and did not have control over user funds. He argued that criminalizing such software infringes on free speech and stifles innovation. On August 6, 2025, a jury convicted Storm solely of operating an unlicensed money-transmitting business. However, the jury deadlocked on the money laundering and sanctions counts, resulting in a partial mistrial.

DOJ Moves to Retry Tornado Cash Co-founder

On March 9, 2026, prosecutors submitted Document 281, requesting that the court initiate a retrial of the money laundering and sanctions charges that previously ended in a deadlock. They estimated that the trial would last approximately three weeks and expressed their preparedness to proceed.

The defense, however, contended that it was too early to establish a trial date since an acquittal motion was still pending. The issue continues despite the Treasury Department lifting sanctions on Tornado Cash in March 2025. Furthermore, the Department of Justice has indicated a decreased emphasis on prosecuting certain non-custodial protocols.

Meanwhile, in a March 2026 report to Congress regarding the use of new technologies to combat illegal financing in digital assets, as required by the GENIUS Act, the U.S. Treasury acknowledged the legitimate uses for crypto mixers. The report also distinguished between custodial mixers, which can follow anti-money laundering (AML) rules and provide investigative data, and non-custodial mixers. 

This balanced approach shows a shift from earlier views, including the 2022 sanctions on Tornado Cash, by acknowledging the benefits of privacy tools while still pushing for regulations to tackle illegal activities without hindering innovation.

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