On October 5, 2026, the US Department of Justice submitted a new filing opposing the venue challenge raised by Roman Storm, co-founder of Tornado Cash. The government intends to continue the prosecution in the Southern District of New York. Storm was arrested in August 2023 and convicted on August 6, 2025, for operating an unlicensed money transmitting business, which carries a maximum five-year sentence.
The jury failed to reach a verdict on additional charges of conspiracy to commit money laundering and conspiracy to violate sanctions, each carrying up to 20 years. A retrial for these counts is scheduled for April 26, 2027, with pretrial proceedings starting in February 2027. Additionally, the defense filed a Rule 29 motion for acquittal on September 30, 2025, which remains pending following oral arguments in April 2026.
Simultaneously, FinCEN formally withdrew its 2023 proposal to classify international crypto mixing as a primary money laundering concern. The agency cited concerns that the proposal was overly broad and could hinder legitimate privacy tools, while also noting the burden of reporting obligations. This decision aligns with previous findings in a White House report regarding the privacy functions of mixers.
Prosecutors maintain that the Tornado Cash protocol facilitated over $1 billion in laundered funds linked to malicious actors, including the Lazarus Group associated with North Korea. The government continues to pursue the case, while the court has yet to issue a ruling on the defense's motion for acquittal or resolve the ongoing dispute regarding the venue of the trial.
