The U.S. Department of Justice (DOJ) announced that it will drop a part of its case against Roman Storm, a developer of Tornado Cash, based on a recent memo but will continue with the prosecution. The trial is set to take place in July, focusing on charges of money laundering and sanctions violations.
What You Should Know:
- The DOJ will not pursue a specific charge alleging Storm’s failure to register as a money transmitter but will continue with other serious allegations.
- This decision follows an April 7 memo issued by Deputy Attorney General Todd Blanche that advised against pursuing ambiguous regulatory cases. The DOJ highlighted this in a letter addressed to the overseeing judge.
Quote: “The Government writes to update the Court regarding this case, which is scheduled for trial on July 14, 2025. After review of this case, this Office and the Office of the Deputy Attorney General have determined that this prosecution is consistent with the letter and spirit of the April 7, 2025 Memorandum from the Deputy Attorney General.”
- Statement from Brian Klein of Waymaker LLP, representing Storm, indicated that such a case should not have been initiated: “Its dismissal would be consistent with the policies outlined in the Department of Justice’s recent guidance on cryptocurrency. Roman’s prosecution poses a significant threat to the crypto industry.”
Klein also emphasized that activities like coding should be protected under free speech laws, similar to expressing ideas through writing.
