Tornado Cash dev Roman Storm trial goes ahead with slight trim

The US Department of Justice (DOJ) is proceeding with its case against Tornado Cash founder Roman Storm, though a minor portion of the indictment has been dropped following a recent policy shift. In a May 15 letter to Judge Katherine Polk Failla, Acting US Attorney Jay Clayton clarified that the charges against Storm remain largely intact. The DOJ, after reviewing the case in light of Deputy Attorney General Todd Blanche’s April 7, 2025 memo, confirmed the prosecution aligns with the memo’s directives.

Blanche’s memo signaled a rollback of the DOJ’s aggressive “regulation by prosecution” approach to crypto enforcement. Specifically, it stated that the DOJ would not prosecute crypto mixers for the actions of their users or for unwitting regulatory violations. Consequently, the charge against Storm alleging failure to comply with money transmitting business registration requirements has been dropped.

However, the core accusations against Storm persist. The DOJ will continue to pursue charges of conspiracy to transmit funds derived from criminal activity or intended to support unlawful activities. This charge, along with counts of money laundering conspiracy and conspiracy to violate US sanctions, remains central to the prosecution. These charges stem from allegations that Tornado Cash facilitated the laundering of over $1 billion in cryptocurrency, including funds linked to the sanctioned Lazarus Group, a North Korean state-backed hacking collective.

Each of the remaining charges carries a substantial prison sentence: 20 years for the money laundering and sanctions violations conspiracies, and five years for the unlicensed money transmitter conspiracy. Storm has pleaded not guilty, and his trial is scheduled for July 14, 2025. His co-founder, Roman Semenov, remains at large.

The DOJ’s altered approach, as evidenced by the amendment to Storm’s indictment, is already influencing other ongoing crypto cases. Several defendants, including those from Samourai Wallet and SafeMoon, are citing Blanche’s memo in attempts to have their charges dismissed. This highlights the significant impact of the DOJ’s shift in policy on the broader crypto legal landscape.