The U.S. Department of Justice (DOJ) is making waves by dropping part of a charge against Tornado Cash developer Roman Storm, yet remains steadfast in pursuing other serious allegations. This legal action, which has captivated the cryptocurrency community, is set to continue with a highly anticipated trial in July 2025.
DOJ Clarifies Stance Post-Blanche Memo
In a surprising twist, the DOJ announced it would not pursue the charge against Storm related to non-compliance with money transmitter business registration rules. This decision aligns with the recent memo from Deputy Attorney General Todd Blanche, which urges against “regulation by prosecution” in ambiguous regulatory landscapes. The memo, dated April 7, 2025, has already influenced other high-profile cases, such as the one involving the developers of Samourai Wallet, where a pause is being considered.
However, the DOJ is pressing forward with accusations that Storm knowingly transmitted illicit funds, conspired to launder money, and violated sanctions law. This determination was outlined in a letter filed to the judge overseeing the case, underscoring the trial’s scheduled date of July 14, 2025. The DOJ maintains that the prosecution aligns with the principles outlined in the Blanche memo, suggesting a nuanced approach to crypto-related legal actions. For a deeper dive into the regulatory implications, see our coverage of the SEC’s latest guidance.
Legal and Industry Reactions
Brian Klein of Waymaker LLP, representing Storm, expressed sharp criticism of the ongoing prosecution. Speaking at CoinDesk’s Consensus 2025 conference in Toronto, Klein asserted, “Roman’s prosecution is a threat to the entire crypto industry.” He argued that the case’s dismissal would resonate with both the Trump Administration’s policies and the DOJ’s recent guidance.
Klein further emphasized the case’s implications on free speech, particularly the freedom associated with writing code. “One of the defenses we’ve raised is that coding—literally typing out code—is protected as free speech,” he stated. This argument draws a parallel between coding and other expressive activities, highlighting the complex intersection of technology and law.
Implications for the Crypto Ecosystem
This case reverberates across the crypto landscape, where regulatory clarity remains a hotly debated topic. The DOJ’s selective prosecution approach may signal a shift toward more precise legal frameworks for digital assets. But it also raises questions about the consistency and fairness of such actions. This follows a broader legislative trend, as detailed in U.S. Congress Braces for Intense Debate Over Crypto Legislation This Summer.
Crypto enthusiasts and developers are watching closely, acutely aware that outcomes could set precedents affecting innovation and regulatory practices. The Tornado Cash case underscores the delicate balance between ensuring compliance with existing laws and fostering an environment conducive to technological advancement.
As the trial approaches, stakeholders are left wondering: Will the DOJ’s refined prosecutorial strategies lead to a more predictable regulatory environment, or will they stifle innovation through selective enforcement? The outcome of Storm’s trial could provide crucial insights into the future trajectory of cryptocurrency regulation in the U.S.
What lies ahead for Roman Storm and the broader crypto community remains shrouded in uncertainty. Yet, as July 2025 inches closer, the industry—armed with skepticism and cautious optimism—stands ready to adapt to whatever unfolds in the courtroom.
Source
This article is based on: DOJ Will Still Pursue Roman Storm Case Despite Blanche Memo, Prosecutors Say
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
