DOJ rejects Tornado Cash developer Roman Storm's argument to dismiss the case following Supreme Court ruling

Attorneys for the U.S. Department of Justice on Tuesday urged a federal judge to reject arguments by Ethereum developer Roman Storm seeking dismissal of his criminal case, which could now return to court for a second time.

Prosecutors urge judge to disregard Supreme Court ruling

In a letter sent to U.S. District Judge Katherine Polk Failla, federal prosecutors asked the court to disregard a recent Supreme Court decision that Storm’s attorneys said could materially affect his case.

Storm was arrested and charged in 2023 for operating Tornado Cash, a coin-mixing service designed to obscure Ethereum transaction histories. Prosecutors alleged Storm knew bad actors were using Tornado Cash to launder money, even though the software operated autonomously without Storm’s direct involvement.

Case history and DOJ’s move to retry

Last summer, a Manhattan jury found Storm guilty of operating an illegal money transmitter, but deadlocked on two other charges: money laundering and sanctions evasion. Storm appealed the verdict. Last month, the Trump DOJ moved to try Storm again on charges including conspiracy to commit money laundering and conspiracy to commit sanctions evasion.

Storm’s argument based on Cox decision

Storm’s legal team pointed to a March 25 Supreme Court ruling in a music copyright case. The Court held that Cox, a major internet service provider, could not be held liable for illegal actions of its customers based on the provider’s awareness that some customers might infringe copyrights.

Storm’s attorneys argued that the Cox ruling should apply to his situation, emphasizing that the Trump administration had previously backed Cox’s position. They said the Supreme Court found that argument persuasive.

DOJ response: Cox is not comparable

In Tuesday’s three-page letter, prosecutors rejected the claim that the Cox decision should have any bearing on Storm’s case.

Prosecutors said Cox discouraged copyright infringement through policies that addressed most identified misconduct and that Cox’s services could be used for many lawful purposes. They contrasted that with Storm, whom they said was personally aware of misconduct by some Tornado Cash users and did not intervene to stop it.

The DOJ also argued there is no evidence that a crypto privacy service like Tornado Cash was capable of “substantial or commercially significant” noncriminal uses, a contention that privacy advocates are expected to dispute.

“The defendant’s conduct simply is not comparable to the conduct at issue in Cox,” the DOJ said Tuesday. “In any event, a civil copyright case has no relevance here in the first place.”

Broader context for the Trump DOJ’s crypto stance

The DOJ’s push to retry Storm comes as the Trump administration has pursued an aggressively pro-crypto agenda. The article notes that last year, the DOJ pledged on multiple occasions to stop prosecuting crypto privacy software developers, a move welcomed by parts of the crypto industry. However, prosecutors have sent multiple such developers to prison in the interim, raising concerns among privacy advocates.