Roman Storm Facing New Trial, DOJ Revives Tornado Cash Prosecution

Roman Storm – a developer behind the Ethereum-based Tornado Cash crypto mixing protocol – is likely headed back to trial.

What's the Scoop?

• Retrial Request: Yesterday evening, U.S. Attorney for the Southern District of New York Jay Clayton submitted a retrial request in its case against Storm, asking the Court to schedule a new trial against the crypto developer on two open charges that resulted in a hung jury last August.
• Previous Trial: Federal prosecutors opened their case against Roman Storm under the Biden Administration in August 2023, charging the developer with: conspiracy to commit money laundering, conspiracy to operate an unlicensed money transmitting business, and conspiracy to violate international sanctions. Last August, a jury found Storm guilty of unlicensed money transmission, but deadlocked on the two other, more serious charges.
• Change of Tune: On the same day federal prosecutors requested their retrial for Storm, the U.S. Treasury released a research report acknowledging (for the first time) the potential lawful use cases of crypto mixing services, while warning they can also be used to evade financial regulations and sanctions.

What's the Take?

The Tornado Cash case is guaranteed to set precedent, and its final outcome is bound to produce profound implications for the crypto industry, open source developers, and internet freedom.