The US Department of Justice isn’t backing down. Despite an internal memo hinting at a more lenient approach toward crypto mixing services, the DOJ is sticking to its guns, continuing to prosecute Tornado Cash co-founder, Roman Storm, on serious federal charges. He’s accused of money laundering, sanctions evasion, and running an unlicensed money transmitting business through Tornado Cash.
Storm’s trial kicks off in less than two months, with his defense already scoring a partial win, prosecutors agreed to drop part of the charge related to operating an unlicensed money transmitting business, acknowledging the inconsistencies with federal guidelines. Looks like they’re tripping over their own guidelines! Still, he’s got plenty to answer for.
The Crypto Mix-Up That Won't Go Away
Now, let’s not forget about the elephant in the room: Tornado Cash was designed to obscure crypto transactions. Its job was to make crypto money transfers hard to trace. And according to the DOJ, that’s not something they’re just going to let slide. In fact, the DOJ is doubling down despite a big policy shift within the department, which now seems to focus more on going after the users of crypto tools for illicit activities, not the platforms.
But the shift didn’t stop the DOJ from keeping those charges on Storm’s plate. He’s got a serious fight ahead in court, with the DOJ showing no signs of backing down. Even with a growing movement from industry voices, including Vitalik Buterin, who backs Storm’s right to build privacy tools without facing criminal charges, the DOJ isn’t letting the case go just yet.
In case you missed it, the Treasury had previously sanctioned Tornado Cash in 2022, blaming it for over $7 billion in illicit transactions. But the saga continues, as the US Treasury quietly removed Tornado Cash from the sanctions list this past March. Ah, the crypto world, where things change fast!
And if you’re wondering about Storm’s co-developer, Alexey Pertsev—he’s serving over five years in a Dutch prison, though his case isn’t over yet.
Stay tuned, folks. This crypto drama is far from over!
Abimbola Adu
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