- Roman Storm is set to stand trial on charges of money laundering and violating sanctions.
- DOJ dropped one of the charges but will still pursue claims of criminal fund transmissions.
- The judge ruled Storm’s code development wasn’t protected under the First Amendment.
Roman Storm, co-founder of crypto mixer Tornado Cash, will stand trial in New York in under two months. U.S. prosecutors confirmed they will continue with charges involving money laundering, sanctions evasion, and transmitting criminal funds.
The case follows a shift in the U.S. Department of Justice’s stance on crypto enforcement. A memo issued in April said the agency would no longer prosecute crypto services for the actions of users. Despite that, the DOJ confirmed the charges against Storm align with the new guidance.
On Thursday, DOJ spokespersons announced they would drop a charge against Storm, which alleged he operated an unlicensed money transmission business. Officials said this decision followed internal reviews by the DOJ and the Office of the Deputy Attorney General. Jay Clayton, the acting U.S. Attorney for Manhattan, outlined the update in a letter to Judge Katherine Polk Failla. The dropped charge involved registration issues with money transmitting laws. The remaining charges against Storm will still go forward.
Authorities claim Storm knowingly helped transmit criminal funds using Tornado Cash. They said the service helped bad actors, including North Korea’s Lazarus Group, move illegal crypto. Storm faces charges of conspiracy to commit money laundering and conspiracy to violate U.S. sanctions. DOJ officials argue Storm’s actions violated federal laws even if Tornado Cash is a non-custodial tool.
Earlier in the case, Storm filed a motion to dismiss the charges. He said his work involved free speech and software development. However, Judge Failla rejected the motion, saying software used to launder money is not protected expression.
Related: U.S. Treasury Delists Tornado Cash Amid Legal and Market Shifts
In 2022, the U.S. Treasury sanctioned Tornado Cash, claiming it had been used to move over $7 billion in crypto. That sanction barred Americans from using the mixer’s services. In March 2025, the Treasury reversed course and removed Tornado Cash from the sanctions list. The move followed a court ruling that smart contracts cannot be treated as property.
Storm’s upcoming trial follows the 2024 sentencing of another Tornado Cash developer, Alexey Pertsev, in the Netherlands. Pertsev was sentenced to over five years for similar charges. He was later released under electronic monitoring while preparing an appeal. The DOJ says it plans to pursue 60 other crypto-related enforcement actions worldwide.
