Tornado Cash Developer Roman Storm to Stand Trial as DOJ Trims Charges

The Department of Justice drops part of its case against Tornado Cash co-founder Roman Storm but will continue pursuing major allegations ahead of a July trial.

Federal prosecutors in the United States are moving forward with their case against Tornado Cash co-founder Roman Storm, albeit with a slightly reduced indictment. This development follows a Justice Department policy shift that signaled a retreat from aggressive enforcement in the crypto space.

Acting U.S. Attorney for Manhattan Jay Clayton informed Judge Katherine Polk Failla in a May 15 court letter that while the prosecution against Storm remains intact, one part of the conspiracy charge—to operate an unlicensed money transmitting business—will be dropped.

The change comes in light of an April 7 memo from Deputy Attorney General Todd Blanche, which outlined a new DOJ approach that ends the practice of "regulation by prosecution" in the crypto industry. The memo clarified that the DOJ would not pursue cases against crypto mixing tools like Tornado Cash based solely on their users' actions or inadvertent regulatory breaches.

A highlighted excerpt of Blanche’s memo stating that the Department of Justice was rolling back its crypto enforcement. Source: US Department of Justice

Despite this shift, Clayton emphasized that the prosecution of Storm is consistent with the DOJ's revised policy. As such, Storm still faces serious accusations, including:

• Conspiracy to commit money laundering, and

• Conspiracy to violate U.S. sanctions—both of which carry up to 20 years in prison.

The government alleges Tornado Cash facilitated the laundering of over $1 billion in cryptocurrency, including funds linked to North Korea’s state-sponsored Lazarus Group, a well-known hacking collective under U.S. sanctions.

Storm, who has pleaded not guilty, is scheduled to go to trial on July 14. He was charged alongside Tornado Cash co-founder Roman Semenov, who remains at large and is believed to be in Russia.

The trimmed charge—the failure to register as a money transmitting business—had previously been part of the broader conspiracy allegations but has now been removed following DOJ reassessment.

Storm’s case is part of a broader trend in the crypto legal landscape. Other defendants, including Samourai Wallet’s founders and SafeMoon CEO Braden John Karony, have cited Blanche’s memo in efforts to dismiss charges ranging from money laundering to securities fraud.

As the DOJ recalibrates its approach to crypto enforcement, Storm's case is shaping up to be a key test of how new policy guidelines will play out in federal court.