- The Department of Justice (DOJ) has dropped part of one count against Tornado Cash co-founder Roman Storm
- This decision follows an April 7 memo from Deputy Attorney General Todd Blanche advising against pursuing cases with unclear regulations
- Despite this, the DOJ will proceed with charges of money laundering and sanctions violations, with the trial set for July 14, 2025
The Department of Justice (DOJ) has decided to drop a portion of its case against Roman Storm, specifically the charge related to failing to register as a money transmitter. This move aligns with a recent policy shift outlined in a memo by Deputy Attorney General Todd Blanche, which discourages “regulation by prosecution” in areas with legal uncertainty. However, the DOJ will continue to pursue charges of money laundering and sanctions violations against Storm, with the trial scheduled for mid-July.
DOJ Adjusts Charges in Light of Policy Memo
In a letter filed to the U.S. District Court in the Southern District of New York, the DOJ stated that after reviewing the case, it determined that the prosecution aligns with the April 7, 2025, memorandum from Deputy Attorney General Todd Blanche. This memo advises against pursuing cases where regulations may be unclear, aiming to end “regulation by prosecution.” As a result, the DOJ will not proceed with the charge alleging Storm failed to comply with money transmitter business registration rules.
Despite dropping the registration-related charge, the DOJ will continue to pursue other charges against Storm. These include allegations that he knowingly transmitted funds tied to criminal activities, conspired to commit money laundering, and conspired to violate sanctions law. The trial is set to commence on July 14, 2025.
Case “Should Never Have Been Brought”
Brian Klein of Waymaker LLP, representing Storm, criticized the ongoing prosecution, stating that the case “should never have been brought.” He emphasized that coding, like writing, is protected under the First Amendment as a form of free speech. Klein argued that dismissing the case would align with both the DOJ’s current guidance and broader principles of justice.
In November last year, the Fifth Circuit Court of Appeals overturned sanctions imposed on Tornado Cash in August 2022, finding that immutable blockchain contracts cannot be classified as “property,” exceeding the statutory authority granted under the International Emergency Economic Powers Act.
