TLDR:
- DOJ will drop part of one count against Roman Storm but continue prosecution for money laundering and sanctions violations
- Trial is scheduled for July 14, 2025, despite the April 7 Blanche memo on crypto regulation
- Storm’s defense argues coding is protected as free speech under the First Amendment
- Tornado Cash was previously sanctioned by US Treasury but later removed from sanctions list
- Storm’s co-developer Alexey Pertsev was sentenced in Dutch court but released pending appeal
The U.S. Department of Justice will continue its prosecution of Tornado Cash developer Roman Storm despite a recent policy memo that suggested a potential shift in how crypto-related cases are handled. The DOJ confirmed on Thursday it would drop only a portion of one count related to money transmitter business registration rules but proceed with the trial scheduled for July.
The case stems from Storm’s involvement with Tornado Cash, an Ethereum-based mixing service designed to enhance privacy by obscuring the source and destination of cryptocurrency transactions. Federal prosecutors allege Storm conspired to launder funds and violate U.S. sanctions laws through the platform.
This decision comes after the April 7 memo from Deputy Attorney General Todd Blanche, which directed prosecutors to avoid pursuing cases where regulations might be unclear. The memo specifically called for an end to “regulation by prosecution,” leading to pauses in other crypto-related cases like the one against Samourai Wallet developers.
Despite this guidance, the DOJ maintains that the prosecution of Storm “is consistent with the letter and spirit” of the Blanche memo, according to a letter filed with the court. The trial remains set for July 14, 2025, in Manhattan federal court.
The Defense’s Position
Brian Klein of Waymaker LLP, representing Storm, has strongly criticized the prosecution. “This case should never have been brought,” Klein stated, arguing that dismissal would align with Trump Administration policies and the principles outlined in the recent DOJ cryptocurrency guidance.
Klein also emphasized their defense strategy during his appearance at CoinDesk’s Consensus 2025 conference in Toronto. “One of the defenses we’ve raised, which is recognized in the U.S., is that coding — literally typing out code — you are given free speech protections for coding,” he explained, comparing it to other protected expressive activities like writing a book.
The defense team views Storm’s prosecution as “a threat to the entire crypto industry” and has vowed to continue fighting for dismissal. This argument touches on fundamental questions about code as speech and the extent of First Amendment protections for software developers.
Broader Context
The case exists within a changing regulatory landscape for cryptocurrency. The U.S. Treasury had previously sanctioned Tornado Cash in 2022, claiming it facilitated over $7 billion in illicit transactions. However, in March, the Office of Foreign Assets Control removed Tornado Cash from its sanctions list following a federal appeals court decision that found immutable smart contracts cannot be sanctioned as property.
Judge Katherine Polk Failla previously denied Storm’s motion to dismiss in September, ruling that using computer code to facilitate money laundering is not protected under the First Amendment, despite Storm’s free speech claims.
Meanwhile, Storm’s co-developer, Alexey Pertsev, was sentenced to more than five years in prison by a Dutch court last year but was released under electronic monitoring in February while his appeal is pending.
Amanda Tuminelli, executive director of the DeFi Education Fund, has voiced support for developers, stating that technologists building neutral privacy tools should not be held to “unreasonable criminal standards.” This sentiment is shared by many industry leaders, including Ethereum co-founder Vitalik Buterin, who continues to support Storm.
The DOJ’s partial rollback of charges highlights ongoing tensions between law enforcement and developers of decentralized software as courts and regulators work to establish clear guidelines for this evolving technology.
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