Tornado Cash dev Roman Storm trial goes ahead with slight trim

US national prosecutors are pressing up with their lawsuit against Tornado Cash laminitis Roman Storm, but volition driblet a tiny portion of their indictment aft the Department of Justice rolled backmost its crypto enforcement past month.

Jay Clayton, the acting US Attorney for Manhattan, told national tribunal justice Katherine Polk Failla successful a May 15 letter that the charges against Storm inactive stand, barroom 1 portion of a conspiracy to run an unlicensed wealth transmitting concern charge.

“After reappraisal of this case, this Office and the Office of the Deputy Attorney General person determined that this prosecution is accordant with the missive and tone of the April 7, 2025 Memorandum from the Deputy Attorney General,” Clayton wrote.

Deputy Attorney General Todd Blanche’s April memo said the Justice Department would extremity the alleged “regulation by prosecution” of crypto, and added that the bureau wouldn’t prosecute crypto mixers similar Tornado Cash “for the acts of their extremity users oregon unwitting violations of regulations.”

A highlighted excerpt of Blanche’s memo stating that the Department of Justice was rolling backmost its crypto enforcement. Source: US Department of Justice

Clayton added that the indictment against Storm volition chopped the accusation that helium failed to comply with wealth transmitting concern registration requirements.

Prosecutors were pursuing that complaint arsenic portion of their allegation that Storm conspired to tally Tornado Cash arsenic an unlicensed wealth transmitter.

The authorities volition inactive propulsion up with the complaint nether the accusation that Storm transmitted funds portion knowing they were derived from a transgression offence oregon were intended to enactment unlawful activity. 

The Justice Department alleged that Tornado Cash helped launder implicit $1 cardinal worthy of crypto, including for the sanctioned North Korean state-backed hacking corporate the Lazarus Group.

Clayton said the Justice Department volition besides inactive prosecute the different 2 charges successful its indictment, 1 number of wealth laundering conspiracy and 1 number of conspiracy to interruption US sanctions.

Related: NFT laminitis stole millions from Bitcoin project, investors allege 

The wealth laundering and sanctions violations conspiracy charges each transportation a maximum condemnation of 20 years successful prison, portion the unlicensed wealth transmitter conspiracy complaint carries a maximum condemnation of 5 years.

Storm has pleaded not guilty, and his proceedings is scheduled for July 14. He was charged alongside chap laminitis Roman Semenov, who is astatine ample and believed to beryllium successful his autochthonal Russia.

Blanche memo cited successful bids to toss

Other crypto executives facing charges person pointed to Blanche’s memo successful a bid to person their cases dismissed.

Crypto mixer Samourai Wallet co-founders Keonne Rodriguez and William Hill had pointed to the memo to effort to disregard their charges of conspiracy to run an unlicensed wealth transmitter and wealth laundering conspiracy.

Braden John Karony, the CEO of crypto steadfast SafeMoon, has besides cited the memo successful an effort to person the charges of securities fraud, ligament fraud and wealth laundering conspiracy against him dismissed.

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