U.S. federal prosecutors have firmly rejected Tornado Cash co-founder Roman Storm’s attempt to leverage a recent Supreme Court ruling to dismiss his criminal charges, calling the cited decision entirely irrelevant to his case.
In a letter filed Tuesday, the Department of Justice responded to Storm’s legal team, who had pointed to the Supreme Court’s ruling in Cox Communications v. Sony Music Entertainment as potentially favorable to their client.
DOJ Calls Cox Ruling “Inapposite” to Storm’s Criminal Case
Storm’s attorneys argued that the Cox ruling, in which the court found that an internet provider should not be held liable for users’ illicit conduct in a copyright dispute, could have implications for their client’s situation.
Prosecutors disagreed sharply. They stressed that Cox dealt with civil contributory liability under copyright law. That framework differs fundamentally from the criminal charges Storm faces for money laundering, unlicensed money transmitting, and sanctions evasion conspiracies.
The government drew a stark contrast between Cox’s behavior and Storm’s own conduct. While Cox actively discouraged infringement with a system that eliminated 98% of identified violations, prosecutors allege Storm deliberately implemented ineffective compliance measures.
Prosecutors Allege Storm Knew About $449 Million Ronin Hack Laundering
According to the DOJ filing, Storm knew about the Ronin hack the day it was announced. He expected that the Tornado Cash service would launder the funds even before the laundering began.
The government highlighted that $449 million in stolen funds moved through Tornado Cash across 1,751 transactions. All of this allegedly occurred with Storm’s knowledge.
Prosecutors further claimed that at least 37% of all funds flowing through the platform were tied to large-scale criminal incidents that Storm was specifically aware of. During the Ronin hack, that figure spiked above 50% from that single criminal incident alone.
“In short, the defendant’s reaction to criminal use of his company was window dressing at best and outright misdirection at worst. It was nothing like Cox’s strong and 98% effective mechanism for dealing with known infringement,” the prosecutors wrote.
Retrial Proposed for October 2026
The filing comes as prosecutors push for a retrial on two unresolved charges, proposing an October 2026 start date. Storm was convicted last August of money-transmitting charges.
However, the jury deadlocked on money laundering and sanctions evasion counts.
Storm’s case continues to divide the crypto community. Ethereum co-founder Vitalik Buterin has publicly supported Storm, calling him honorable for building privacy tools that remain functional years after he stopped working on them.
Meanwhile, the founders of a similar mixing service, Samourai Wallet, have already pleaded guilty to money laundering charges.
Co-founder Keonne Rodriguez received a five-year sentence, while William Lonergan Hill received a four-year sentence.
The outcome of Storm’s retrial could set a significant precedent for how criminal liability applies to developers of decentralized privacy protocols.
