Court withdraws one of the charges against co -founder of Tornado Cash, but continues with the trial

He US Department of Justice. Partially dismissed the case against Roman Storm, but maintains key accusations and the trial will continue.

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• Storm will face a money laundering and violations of international sanctions.
• A position for operating without a license was withdrawn from the process.
• Organizations criticize the legal ambiguity that persists in the case.

He US Department of Justice (DOJ) He has decided not to continue with a part of the charges against Roman Storm, co -founder of the Privacy Protocol Tornado cash. The decision was announced this week by the Prosecutor of the Southern District of New York, in the prelude to the trial that will begin on July 14.

Storm had been initially accused in 2023 conspiracy to commit money laundering and violate international sanctions. Although much of the case is maintained, Prosecutors chose not to advance with a specific section related to the operation of a money transmissions business without license, As indicated The Block.

Tornado cash and regulatory problems

Tornado cash It is a decentralized protocol in Ethereum Designed to preserve financial privacy. Its mechanism allows hiding the history of transactions through a mixing system (mixing) of digital assets, hindering the tracking on the network.

In 2022, the Treasury Department, Through the Foreign Assets Control Office (OFAC), sanctioned a Tornado cash, arguing its use by North Korean hackers to wash stolen funds. This sanction was withdrawn in March 2025, although legal implications remain in force for their developers.

Storm, meanwhile, has sought that positions be dismissed, arguing that his work is protected by the First amendment. It alleges that developing open source does not constitute a crime, even if third parties make improper use of the software.

New position of DOJ: No more “Regulation by inspection”

The decision of DOJ It aligns with a memorandum published in April 2025, under the current administration of Donald Trump. In the document, the department said that it will not use the criminal route to impose regulatory structures on cryptocurrencies, leaving that task to competent bodies such as the Bag and Securities Commission (SEC) and the Basic Products Trade Commission (CFTC).

The new approach seeks to focus on cases with real victims or specific damage, such as scams, computer attacks or terrorism financing. The Memo also indicates that the technical violations related to the registration of platforms or intermediaries of the market will not be criminally pursued, marking a distinction with previous administrations.

Mixed reactions in the crypto community

The organization DEFI EDUCATION FUND commented in an X publication that although this decision is consistent with the change of position of the DOJ, “Do not completely correct the mistakes made in this case.”

Also, Peter Van Valkenburgh, executive director of Coin Center, He expressed his disappointment for the decision to move forward with the remaining positions. In particular, he criticized legal ambiguity about the role of transmission of money in decentralized contexts.

“When the freedom of an American is at stake, the principle of indulgence demands that the court resolve the ambiguity in favor of the accused,” Van Valkenburgh said in X. According to him, that position should also be discarded.

Next steps: trial in July

Despite the partial retirement of charges, Roman Storm continues to face a trial in July. Among the accusations that remain are conspiracy for money laundering, transmission of money without license and conspiracy to violate the International Emergency Economic Powers Law (IEEPA).

The trial will be closely observed by the technological, legal and crypto community, being one of the first cases in which an open software developer faces the possibility of prison for its role in the development of decentralized tools.

Beyond the final verdict, this case will mark an important precedent on the limits of the legal responsibility of developers in the ecosystem Blockchain.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain

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