The U.S. Department of Justice (DOJ) has denied Roman Storm’s motion to dismiss criminal charges related to his role in developing Tornado Cash, an Ethereum-based privacy tool allegedly used to launder billions in illicit funds. The decision, filed in federal court late Wednesday, ensures the case will proceed to trial unless a plea deal is reached.
Storm, one of three co-founders of the controversial cryptocurrency mixer, faces charges of conspiracy to commit money laundering, operate an unlicensed money transmitter, and violate sanctions laws. Prosecutors allege Tornado Cash processed over $1 billion in criminal proceeds, including funds tied to North Korean hacking group Lazarus.
Legal analysts note the case represents a pivotal test of developer liability in decentralized finance. “This establishes DOJ’s position that writing code for tools knowingly used by criminals can constitute criminal conspiracy,” said a former federal prosecutor familiar with the case, speaking on condition of anonymity.
The defendant’s attorneys had argued Storm lacked control over Tornado Cash’s decentralized operations after its 2019 launch. Court filings reveal prosecutors countered with evidence of ongoing maintenance work and profit-taking through the project’s governance token.
Observers suggest the ruling may influence pending legislation on cryptocurrency regulation. A Senate staffer involved in digital asset policy discussions told SourceRated: “We’re watching this closely—it could redefine what constitutes a financial service under U.S. law.”