DOJ Drops Charge Against Tornado Cash Developer Amid Crypto Policy Shift

The U.S. Department of Justice (DOJ) has dropped part of its case against Tornado Cash developer Roman Storm, citing a recent policy shift outlined in an April 7 memo by Deputy Attorney General Todd Blanche. The dropped charge relates to Storm’s alleged failure to register as a money transmitter. However, Storm still faces trial in July over accusations of facilitating the transmission of criminal funds, money laundering conspiracy, and violating U.S. sanctions law.

In a letter to the presiding judge, the DOJ clarified that the prosecution aligns with the new memo, which discourages “regulation by prosecution” in areas with legal uncertainty. The memo has already impacted similar cases, such as the one involving the developers of Samourai Wallet, where prosecutors are considering a pause.

Storm’s attorney, Brian Klein of Waymaker LLP, criticized the DOJ’s ongoing prosecution, stating the case “should never have been brought.” He emphasized that the charges threaten the broader crypto industry and violate fundamental rights. Klein pointed out that coding, like writing, is protected under the First Amendment as a form of free speech.

Speaking at CoinDesk’s Consensus 2025 conference in Toronto, Klein reiterated his view that developing open-source code like Tornado Cash is not a criminal act. He argued that dismissing the case would align with both the DOJ’s current guidance and broader principles of justice.

This case continues to draw attention from the crypto community, who see it as a key battle over the rights of developers and the future of decentralized finance (DeFi) in the U.S. The trial is set to begin on July 14, 2025.