Federal prosecutors told a New York judge this week to reject Ethereum developer Roman Storm’s bid to toss his criminal case — arguing a recent Supreme Court copyright decision has no bearing on the Tornado Cash prosecution and clearing the way for a likely second trip to court.
What happened
- In a terse, three-page filing to Judge Katherine Polk Failla, U.S. attorneys in the Southern District of New York asked the court to disregard Storm’s attempt to cite a March 25 Supreme Court ruling in a music‑copyright case as grounds for dismissal.
- Storm, arrested in 2023, is accused of operating Tornado Cash, a smart-contract-based coin mixer that lets Ethereum users obscure on‑chain transaction history. Prosecutors say Storm knew some users were laundering funds through the tool and failed to stop it, even though the software operates autonomously.
- Last summer a Manhattan jury convicted him of operating an illegal money transmitter but deadlocked on two other counts related to money laundering and sanctions evasion. Storm appealed, and the Justice Department has since signaled it will try him again, filing charges for conspiracy to commit money laundering and conspiracy to commit sanctions evasion.
Why Storm cited the Supreme Court ruling
- Storm’s lawyers pointed to the Supreme Court’s unanimous decision that Cox, an internet service provider, could not be held liable for customers’ illegal music streaming simply because the ISP knew some customers were infringing. They argued the case showed mere awareness of customer wrongdoing does not equate to criminal intent, noting the government itself had backed Cox’s position.
- Storm’s team urged Judge Failla to apply the same principle to the Tornado Cash facts.
How the DOJ responded
- The DOJ rejected the comparison outright. Prosecutors said Cox actively discouraged infringement, enforced policies that halted most identified misuse, and provided a service with broad lawful uses. By contrast, they argued, Storm was personally aware of illicit use of Tornado Cash and did not intervene.
- The prosecutors also asserted there is no evidence Tornado Cash had “substantial or commercially significant” noncriminal uses — a point that will alarm privacy advocates who argue for a user’s right to financial privacy.
- “The defendant’s conduct simply is not comparable to the conduct at issue in Cox,” the filing states. The DOJ added that a civil copyright ruling is not relevant to this criminal prosecution.
Why this matters for crypto
- The case highlights growing legal and political tensions around privacy tools in the crypto space. The Trump administration has promoted a pro‑crypto agenda and previously pledged limits on prosecuting developers of privacy software — a stance that pleased many in the industry. Yet federal prosecutors have continued to pursue and convict multiple developers, raising alarm among privacy proponents.
- If the judge rejects Storm’s attempt to rely on the Cox decision, the retrial push by prosecutors could move forward, keeping in play a high‑profile test of how criminal law applies to autonomous crypto protocols and their creators.
Next steps
- Judge Failla will decide how to handle the parties’ competing filings. Depending on her ruling, Storm’s case could return to court for a second trial or proceed through further appeals — a development the crypto community will be watching closely.
Read more AI-generated news on: undefined/news
