US May Retry Tornado Dev Roman Storm on Money Laundering, Sanctions Charges

The United States Department of Justice (DOJ) is considering a retrial for Tornado Cash developer Roman Storm after a partial verdict left two major charges unresolved.

While Storm was convicted on one felony count, conspiracy to operate an unlicensed money transmitting business, the jury could not reach a unanimous decision on charges of conspiracy to commit money laundering and conspiracy to violate U.S. sanctions against North Korea.

Legal experts say the DOJ’s decision on whether to proceed with a retrial is expected in the coming days. The unresolved charges center around allegations that Storm’s involvement in developing Tornado Cash facilitated criminal use of the protocol, including funds tied to state-sponsored North Korean hackers.

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Legal Fallout and Industry Concerns

Storm’s trial has been closely watched by both the cryptocurrency industry and digital privacy advocates. Legal experts argue the case sets a critical precedent, not only for privacy-preserving blockchain tools but also for open-source developers in general.

“This is a sad day for DeFi,” said Jake Chervinsky, chief legal officer at Variant Fund, on X. He emphasized that Storm’s conviction under U.S. Code Section 1960—used to prosecute unlicensed money transmitters—poses a serious threat to the decentralized finance ecosystem. 

Attorney Zack Shapiro echoed similar concerns, calling the outcome “pretty depressing” but noted that at least the more severe charges—money laundering and sanctions violations—did not result in immediate convictions. “It’s good the draconian sentencing is off the table, for now,” he posted on X.

Tornado Cash Faces Broader Legal Struggle

Tornado Cash, a crypto mixing service, has long been in the crosshairs of U.S. authorities. In 2022, the U.S. Office of Foreign Assets Control (OFAC) imposed sanctions on the protocol, citing its alleged use in laundering over $7 billion worth of cryptocurrency. This included funds linked to North Korean hackers tied to cyberattacks and theft.

However, in a surprise legal victory for the crypto industry, a U.S. court overturned those OFAC sanctions in January 2025. The ruling gave a boost to privacy-preserving protocols and open-source software advocates, though the Storm case remains a complex legal battleground.

If the DOJ decides to retry the unresolved counts, the outcome could have long-lasting effects on how decentralized technologies and their developers are regulated in the United States.

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