Tornado Cash Founder's April 7 Dismissal Bid Rejected

US prosecutors on April 7 rejected a motion to dismiss charges against Tornado Cash co-founder Roman Storm, pushing for a new trial in October 2026 following a previous jury deadlock.

"The defense's reliance on copyright case law is a distraction from the core charges of money laundering and sanctions violations," Jay Clayton, a prosecutor for the Southern District of New York (SDNY), said in the filing.

Storm faces allegations of conspiracy to operate an unlicensed money transmitting business and to violate sanctions. A trial in late 2025 ended with a deadlocked jury, prompting the prosecution's push for a retrial. The charges relate to the alleged use of the Tornado Cash service to launder funds for sanctioned entities.

This legal battle is closely watched in the crypto industry, as a conviction could establish a significant legal precedent holding developers of open-source privacy tools liable for their misuse. The outcome may increase regulatory uncertainty, potentially stifling innovation in the decentralized finance (DeFi) sector and pressuring the value of privacy-focused cryptocurrencies. The ongoing case contributes to a bearish sentiment around privacy protocols, with parallels being drawn to regulatory actions against other mixing services.

This article is for informational purposes only and does not constitute investment advice.