Recently, US prosecutors decided to reduce the scope of the criminal case against Roman Storm, co-founder of the crypto mixer Tornado Cash, following a shift in the US Department of Justice's policy on cryptocurrency enforcement.
Political Shifts and Charges Against Roman Storm
Acting U.S. Attorney Jay Clayton informed Judge Katherine Polk Failla in a letter that the government will no longer pursue a part of its original indictment against Storm related to operating Tornado Cash without a proper money-transmitting license. These changes were initiated by new directives from Deputy Attorney General Todd Blanche.
Remaining Charges and Implications
Despite the partial retreat, the central allegations against Storm remain intact. He still faces charges related to transmitting funds he allegedly knew were tied to criminal activity. The Justice Department claims that Tornado Cash laundered over $1 billion in cryptocurrency.
Upcoming Steps in the Case
Clayton stated that the remaining charges, including conspiracy to commit money laundering and violating sanctions, carry a maximum penalty of 20 years in prison. Storm has pleaded not guilty, with the trial scheduled for July 14. His co-founder, Roman Semenov, is currently at large.
These developments highlight the evolving approach of prosecutors towards cryptocurrency-related cases, while the global market continues to respond to legal and regulatory challenges.
