Jury Deadlock Sparks New Legal Battle
Roman Storm, co-founder of the cryptocurrency mixing service Tornado Cash, is once again at the center of a high-stakes legal fight.
Storm was found guilty last summer of conspiring to operate an unlicensed money-transmitting business. However, jurors were deadlocked on whether he also conspired to commit money laundering and to violate U.S. sanctions law, both of which carry significantly heavier potential sentences. These two unresolved counts could result in up to 40 years in prison if Storm is convicted.
Prosecutors Push for October Showdown
On Monday, federal prosecutors led by U.S. Attorney Jay Clayton filed a letter in the Southern District of New York requesting that Judge Katherine Polk Failla set a new trial date for Storm in October 2024. They proposed starting the retrial between October 5 and 12, estimating that proceedings would last approximately three weeks. This request comes after prosecutors indicated they were prepared to move as early as spring, but Storm’s defense team countered that they would not be available until late 2026.
The scheduling dispute highlights just how contentious this case has become.
According to coindesk.com, Storm remains free on bail while his legal team pursues a motion for judgment of acquittal, with oral arguments scheduled for April 9—a concrete date that may affect whether or when a retrial actually takes place.
Two Charges Still Hang in Balance
The government’s renewed focus is on counts one and three of their indictment: conspiracy to commit money laundering and conspiracy to violate U.S. sanctions law. These charges stem from allegations that Tornado Cash facilitated the movement of illicit funds, including transactions linked by authorities to North Korea’s Lazarus Group. The U.S. Treasury had blacklisted Tornado Cash in August 2022, claiming $7 billion had been laundered through its protocol since 2019—a figure central to the prosecution’s case.
Yet, there is a twist: an appellate court later questioned whether the Treasury had proper authority to sanction open-source smart contracts like those underlying Tornado Cash, leading to those specific sanctions being lifted. On paper, Storm faces severe criminal exposure; but with regulatory uncertainty now clouding some foundational claims, the legal landscape is far from settled.
Defense Calls Retrial Request Premature
Storm’s attorneys argue that setting a new trial date is premature given their pending motion for acquittal on all charges. Judge Failla has scheduled oral arguments for April 9, and the outcome could render a retrial unnecessary if she rules in Storm’s favor. Defense counsel has also cited scheduling conflicts that would prevent them from preparing for any retrial before late 2026—a timeline starkly at odds with prosecutors’ push for an October start.
Amanda Tuminelli, legal chief at the DeFi Education Fund, publicly criticized the Department of Justice’s decision to pursue another trial against Storm so soon after the mixed verdict. The defense maintains that further prosecution only adds uncertainty for developers working on privacy tools in crypto.
Why it matters
The outcome of Roman Storm’s case could have broad implications for software developers and crypto innovators across the United States. If convicted on either remaining count—money laundering or sanctions violations—Storm could face up to 40 years behind bars, sending a strong signal about personal liability even for those who build decentralized protocols. The government’s pursuit comes as other privacy-focused projects attract investment; notably, Josh Swihart's Zcash Open Development Lab recently raised $25 million to expand development of privacy-centric wallets and protocols.
For now, all eyes are on April 9 when Judge Failla will hear arguments on Storm’s acquittal motion—a hearing that may determine whether this high-profile crypto case heads back into court this fall or drags out even longer due to scheduling disputes and ongoing legal debates over open-source software liability.
What remains unresolved
If Judge Katherine Polk Failla grants the U.S. prosecutors' request for a retrial of Roman Storm on the unresolved money laundering and sanctions violation charges, with a proposed start date between October 5 and 12, 2024, the immediate outcome will be the scheduling of a new three-week trial; however, this remains unclear pending the outcome of Storm’s motion for acquittal, which is set for oral argument on April 9.