"The case centers on Tornado Cash, a decentralized crypto mixer designed to obscure the origin and destination of blockchain transactions. Prosecutors argue the tool enabled large-scale illicit finance. Storm and his supporters argue the government is attempting to criminalize open-source code."
"Storm's first trial ended in August with a mixed outcome. A Manhattan jury convicted him of conspiracy to operate an unlicensed money-transmitting business but deadlocked on two other charges: conspiracy to commit money laundering and conspiracy to violate sanctions. Those unresolved counts carry the heaviest penalties."
"Last year, Deputy Attorney General Todd Blanche circulated a memo stating that the Justice Department 'is not a digital assets regulator.' The guidance instructed prosecutors to avoid cases that attempt to impose regulatory frameworks through criminal charges against platforms, wallets, and similar infrastructure."
Federal prosecutors in Manhattan are requesting a retrial for Tornado Cash developer Roman Storm on two counts where jurors failed to reach unanimous verdicts in his August trial. Storm was convicted of conspiracy to operate an unlicensed money-transmitting business but the jury deadlocked on conspiracy to commit money laundering and conspiracy to violate sanctions charges. These unresolved counts carry severe penalties, potentially exposing Storm to 40 years in federal prison if convicted on both. The case represents a significant legal battle over software development liability and criminal responsibility in cryptocurrency. Prosecutors argue Tornado Cash, a decentralized crypto mixer, enabled illicit finance, while Storm's supporters contend the government is criminalizing open-source code. The retrial request comes amid a policy shift in Washington, with the Justice Department recently instructing prosecutors to avoid targeting developers for user conduct.
Read at Bitcoin Magazine
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