Key Highlights
- Roman Storm faces renewed pressure as DOJ rejects his bid to use a Supreme Court ruling to argue Tornado Cash was a neutral tool.
- Prosecutors say Storm’s actions went beyond neutrality, citing platform changes and alleged misleading responses to victims’ inquiries.
- The case could set a major precedent on whether crypto developers can be held liable for how users operate decentralized tools.
Roman Storm, Co-Founder of the crypto mixer Tornado Cash, is under renewed legal pressure after federal prosecutors rejected his team’s attempt to use a recent Supreme Court ruling in his defense.
The case, in Manhattan’s Southern District of New York, could set important precedents for open-source crypto developers and decentralized finance platforms.
In a letter filed yesterday, Storm’s lawyers pointed to the Supreme Court’s decision in the Cox case, which limited liability for internet providers when users break the law, arguing it supports a “neutral tool” defense. Prosecutors, however, said Storm’s actions were very different from Cox, highlighting his direct role in enabling illegal activity on the platform.
The Department of Justice (DOJ) pointed out that while Cox had strong systems to stop copyright violations, Storm “actively lied in response to inquiries from victims” and oversaw more than 250 changes to the platform without stopping illegal activity.
Storm, a U.S. citizen, was convicted in August 2025 for running an unlicensed money-transmitting business. The jury could not reach a verdict on money laundering and sanctions charges, leading to a partial mistrial. The case now focuses on a Federal Rule 29 motion for acquittal, which Storm’s lawyers have updated to include the Cox ruling.
Legal clash over developer liability
The DOJ’s rejection highlights clear differences between Cox and Tornado Cash. Unlike Cox, which took strong steps to prevent illegal activity, Storm and Tornado Cash allegedly ignored practical ways to stop crimes.
“It was nothing like Cox’s robust and 98% effective mechanism for dealing with known infringement,” prosecutors wrote. The government argues that Storm’s actions show intent and active misdirection, not just neutral platform management.
The case also reflects larger tensions between privacy, regulation, and national security. Even though the DOJ has previously said it would avoid prosecuting crypto privacy developers, authorities have continued pursuing similar cases.
The April 9 hearing before Judge Katherine Polk Failla carries high stakes. If granted, the ruling could dismiss Storm’s conviction or limit the prosecution’s case. If denied, he faces up to five years in prison and a retrial on unresolved charges in October 2026.
The decision may create a significant precedent regarding decentralized finance and the liability of open-source software. The guilty verdict will pose further legal problems for programmers, but the opposite will bolster arguments in favor of decentralized protocols.
The trial currently proceeding in the Southern District of New York is one to watch because it is a major test regarding privacy and innovation in cryptocurrencies.
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