In the latest development concerning the ongoing legal saga surrounding Tornado Cash, US prosecutors have firmly rejected the defense put forth by Roman Storm, one of the co-founders of the controversial privacy tool. The authorities have declared that Storm’s arguments for dismissal are not applicable, adding further complexity to a case that has drawn significant attention.
This week, Jay Clayton, the US Attorney for the Southern District of New York, communicated his opposition in a letter to Judge Katherine Failla, opposing Storm’s recent request for a judgment of acquittal. This request builds upon an April 2 motion in which Storm’s legal team claimed that a 2026 Supreme Court case, correctly cited as Cox Communications, Inc. v. Sony Music Entertainment, supported their position.
The case at hand centered around the civil liability of an internet service provider concerning the copyright infringement activities of its subscribers. The Supreme Court had ruled that Cox was not liable for the infringing actions of its users, as it did not induce or facilitate these infringements.
However, Clayton’s response took a decisive stance, suggesting the distinctions between this case and that of Tornado Cash are vast: “The defendant and the Tornado Cash service are a far cry from Cox,” he emphasized, noting that even if the Cox case had some relevance, its rationale does not aid Storm’s situation due to the significantly different facts involved.
Clayton further elaborated, indicating that the measures taken by Storm to address illicit activities surrounding Tornado Cash were inadequate, dubbing them as mere “half-measures.” He described the attempts at compliance with regulations as little more than window dressing, suggesting that they served to mislead law enforcement rather than implementing effective anti-money laundering (AML) practices.
Notably, Tornado Cash was sanctioned by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) in August 2022, accused of failing to implement controls robust enough to prevent the laundering of funds by malicious actors, including the notorious Lazarus Group, linked to North Korea.
Though the sanctions imposed on Tornado Cash were overturned in March 2025, thanks to a ruling from the Court of Appeals that concluded OFAC had overstepped its authority, the ongoing legal troubles for Storm have not dissipated.
Earlier in March, prosecutors filed a motion for a retrial concerning the count on which the jury could not reach a verdict during the previous trial in August 2025. They are advocating for a new trial date, proposing the period between October 5 and 12, 2026, to resolve the remaining charges against him.
Roman Storm was previously indicted following the FTC sanctions, facing serious charges including conspiracy to commit money laundering and operating an unlicensed money-transmitting business. While the jury did find him guilty of one count related to the unlicensed business, they remained deadlocked on the other charges, leaving the door open for prosecutors to seek a retrial.
Storm’s legal team, arguing for acquittal, has indicated that the prosecution’s evidence does not sufficiently demonstrate that their client intentionally aided in money laundering activities. The upcoming oral arguments scheduled for April 9 will aim to address the pending Rule 29 motion, pivotal to the future of this high-profile case.
