"U.S. DOJ Pursues Indictment of Tornado Cash Co-Founder Roman Storm"

# DOJ Advances Against Tornado Cash Co-Founder Roman Storm The U.S. Department of Justice (DOJ) is pressing forward with charges against Roman Storm, co-founder of the cryptocurrency mixer Tornado Cash, as reported by Decrypt on October 16. Storm is accused of money laundering, sanctions evasion, and enabling transactions involving illicit funds. He is scheduled to appear in federal court to confront these allegations. A DOJ representative commented, "The government is moving towards prosecuting Storm for conspiracy to commit money laundering, evade sanctions, and handle illicitly obtained funds.” Storm's trial is anticipated to begin in a Manhattan federal court within the next two months. Nonetheless, specific charges associated with the conspiracy to run an unlicensed money-transmitting business are being dropped. The DOJ explained that certain accusations conflicted with the Financial Crimes Enforcement Network (FinCEN) guidance from 2019, which stated that non-custodial technology entities are not easily classified as money transmitters. Privacy advocates in the cryptocurrency sector welcomed an internal DOJ memo signaling a shift in enforcement strategy. The memo indicates the DOJ will reduce broad prosecutions against mixing services, focusing instead on their illegal use. Amanda Tuminelli, executive director of the DeFi Education Fund, praised the decision, stating, "Developers of neutral, non-custodial technologies should not be subjected to overly restrictive legal interpretations." # Legal Battle and Privacy Debate Storm's trial will be presided over by U.S. District Judge Katherine Polk Failla in Manhattan. Judge Failla has previously ruled that Storm’s use of computer code to facilitate money laundering doesn't qualify for First Amendment protection. Storm's defense contended that his technological developments are shielded by First Amendment rights, but this assertion was overruled. Tornado Cash was previously listed on the U.S. Treasury Department's sanctions list but was removed in March following a federal appeals court ruling that declared the Treasury's classification of the platform as an asset exceeded its authority. # Precedent and Implications for the Cryptocurrency Industry In a connected case, a Dutch court sentenced Alexey Pertsev, another Tornado Cash developer, to 64 months in prison last year for money laundering. Pertsev is now released under electronic monitoring as he prepares to appeal the ruling. The ongoing legal debates around cryptocurrency privacy tools highlight broader industry tensions. Privacy advocates argue that platforms like Tornado Cash are intended solely to protect user privacy. Both the DOJ and Storm’s representatives have yet to issue further comments on the matter.