Key Takeaways
- The U.S. Department of Justice is moving forward with its case against Tornado Cash co-founder Roman Storm.
- Prosecutors dropped one charge related to operating an unlicensed money-transfer business.
- Storm is scheduled to face trial on July 14 and could face up to 40 years in prison.
Tornado Cash co-founder Roman Storm will go to trial this summer, as the U.S. Department of Justice (DOJ) confirmed it will continue prosecuting the developer on serious criminal charges, including money laundering and sanctions violations.
The case marks a notable exception to the DOJ’s recent shift in crypto enforcement strategy under the Trump administration. In an April 7 memo, the agency signaled it would prioritize action against companies, not individuals.
However, in Storm’s case, prosecutors say the conduct has risen to a more serious level.
Storm To Stand Trial in July
In a May 15 letter to Judge Katherine Polk Failla, acting U.S. Attorney Jay Clayton confirmed that the DOJ had reviewed Storm’s indictment and decided to remove one count, conspiracy to operate an unlicensed money-transmitting business.
The rest of the charges, however, remain intact.
“After review of this case, this Office and the Office of the Deputy Attorney General have determined that this prosecution is consistent with the letter and spirit of the April 7, 2025, Memorandum from the Deputy Attorney General,” Clayton wrote.
Storm has pleaded not guilty. His trial is set to begin on July 14.
Tornado Cash Trial Stands Out Amid Broader DOJ Retreat
The Justice Department’s decision to pursue the case stands in contrast to its broader softening stance toward the crypto industry.
Last month, it disbanded its National Cryptocurrency Enforcement Team, signaling a retreat from regulation-by-enforcement.
The Securities and Exchange Commission (SEC), under new leadership, has also walked back many of the lawsuits filed during Gary Gensler’s tenure, cases that critics said stifled innovation without offering clear regulatory guidance.
However, prosecutors argue that Tornado Cash is different. Storm isn’t just accused of running an unregistered business—he faces allegations of laundering more than $1 billion in illicit proceeds, including funds linked to North Korean hackers.
If convicted, Storm faces up to 40 years in prison—20 years each for conspiracy to commit money laundering and conspiracy to violate sanctions.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
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