The US Department of Justice intends to bring criminal charges against the developer and co-founder of the cryptocurrency mixer Tornado Cash, Roman Storm.

Federal prosecutors confirm that Storm conspired to launder money, circumvent U.S. sanctions, and conduct an unlicensed money transfer business through Tornado Cash.

The trial is set to begin in less than two months. Recent court documents show that prosecutors have agreed to drop the portion of the charge related to operating a money-transfer business without a license, acknowledging inconsistencies with federal regulations.

In 2019, FinCEN clarified that ”non-custodial entities” such as Tornado Cash are not classified as money transfer operators.

The proceedings against Storm continue despite an internal service memo circulated last month about the DOJ changing its approach to handling cases involving cryptocurrency mixing services. It indicated that the agency would focus on prosecuting individuals who use crypto tools for criminal purposes, rather than prosecuting the platforms themselves.

Tornado Cash co-founder Alexey Pertsev was sentenced to more than five years in prison in May 2022 for laundering $1.2 billion through a mixer, but was released to electronic monitoring in February 2025 pending appeal.

Tornado Cash found itself under OFAC sanctions in August 2022 due to its role in money laundering. According to the U.S. authorities, since the creation of the service, attackers have spent more than $7 billion through it. Tornado Cash was used in particular by the North Korean group Lazarus.

Recall that on January 21, 2025, the U.S. Court of Appeals for the Fifth Circuit revoked the sanctions due to ”abuse of authority” by OFAC and sent the case to the U.S. District Court for the Western District of Texas for further proceedings.

The US Department of Justice intends to bring criminal charges against the developer and co-founder of the cryptocurrency mixer Tornado Cash, Roman Storm.

Federal prosecutors confirm that Storm conspired to launder money, circumvent U.S. sanctions, and conduct an unlicensed money transfer business through Tornado Cash.

The trial is set to begin in less than two months. Recent court documents show that prosecutors have agreed to drop the portion of the charge related to operating a money-transfer business without a license, acknowledging inconsistencies with federal regulations.

In 2019, FinCEN clarified that ”non-custodial entities” such as Tornado Cash are not classified as money transfer operators.

The proceedings against Storm continue despite an internal service memo circulated last month about the DOJ changing its approach to handling cases involving cryptocurrency mixing services. It indicated that the agency would focus on prosecuting individuals who use crypto tools for criminal purposes, rather than prosecuting the platforms themselves.

Tornado Cash co-founder Alexey Pertsev was sentenced to more than five years in prison in May 2022 for laundering $1.2 billion through a mixer, but was released to electronic monitoring in February 2025 pending appeal.

Tornado Cash found itself under OFAC sanctions in August 2022 due to its role in money laundering. According to the U.S. authorities, since the creation of the service, attackers have spent more than $7 billion through it. Tornado Cash was used in particular by the North Korean group Lazarus.

Recall that on January 21, 2025, the U.S. Court of Appeals for the Fifth Circuit revoked the sanctions due to ”abuse of authority” by OFAC and sent the case to the U.S. District Court for the Western District of Texas for further proceedings.