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The Money Desk · Blog
Re:

DOJ Presses Tornado Cash Case as Treasury Reportedly Withdraws Mixer Plan

DOJ's case against Roman Storm and Treasury's Tornado Cash policy actions are separate. Here is what the 2025 verdict and sanctions decision established—and what remains only reported in 2026.
From TheFinanceBase Team3 min to read
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Two separate developments are shaping the Tornado Cash story. The U.S. Department of Justice (DOJ) is continuing its criminal case against Roman Storm: DOJ reported that a jury convicted him in August 2025 on one conspiracy count, while a later news report says the government opposed his venue challenge and a retrial is scheduled for April 2027. Separately, Treasury removed Tornado Cash from its sanctions list in March 2025. A report dated October 6, 2026, also says Treasury moved to withdraw a proposed mixer-reporting rule, but that withdrawal has not been independently confirmed by an official notice.

What happened in the Tornado Cash case?

The case has two different tracks: a criminal prosecution brought by DOJ and administrative actions involving Treasury sanctions and a proposed reporting rule. Treasury’s sanctions decision did not resolve Storm’s prosecution, and the reported move to withdraw the rule is not a court ruling.

Track Responsible body What the action means
Criminal prosecution DOJ Determines criminal charges and their outcomes through court proceedings. DOJ reported a conviction on one count in 2025; later procedural developments are reported by a secondary source.
Sanctions Treasury Controls whether economic sanctions apply. Treasury announced that it removed Tornado Cash sanctions in March 2025.
Proposed mixer reporting rule Treasury/FinCEN policy process Would concern regulatory reporting requirements. A secondary report says Treasury moved to withdraw the proposal; an official withdrawal notice was not located in the available reporting.

Was Roman Storm convicted?

Yes, on one count. On August 6, 2025, DOJ announced that a jury convicted Storm of conspiring to operate an unlicensed money-transmitting business after a four-week trial. DOJ said jurors did not reach verdicts on the remaining counts. That means the reported conviction should not be described as a conviction on every charge, and the unresolved counts should not be described as acquittals.

When DOJ announced charges against Storm and Roman Semenov on August 23, 2023, its claims about their conduct were allegations in an indictment, not findings established at trial. DOJ alleged that they created, operated, and promoted Tornado Cash, knew it was used to launder criminal proceeds, and failed to implement controls. The later jury verdict establishes the outcome only for the count on which Storm was convicted.

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What is the latest reported court development?

Printhereum reported on October 6, 2026, that DOJ filed a letter on October 5 opposing Storm’s challenge to venue. The report also says an order dated August 25, 2026, set a retrial for April 26, 2027. The underlying letter and order were not available in the official records surfaced for this account, so these dates and procedural details should be treated as reported rather than independently confirmed.

Did Treasury drop sanctions on Tornado Cash?

Treasury announced on March 21, 2025, that it removed economic sanctions against Tornado Cash after reviewing novel legal and policy questions involving sanctions and evolving technology. The decision changed the sanctions status of the service; it did not overturn Storm’s jury verdict or decide the criminal case.

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The delisting also did not amount to a finding that Tornado Cash had never been used to launder stolen funds. In its 2023 announcement, Treasury said Lazarus Group used the service to obscure more than $455 million stolen in the March 2022 Ronin network bridge attack, more than $96 million from the Harmony Horizon bridge heist, and at least $7.8 million from the Nomad heist. Those figures are Treasury’s reported amounts and retain the agency’s qualifiers.

In its March 2025 announcement, Treasury said it remained concerned about DPRK-linked digital-asset theft and money laundering and would continue monitoring transactions that may benefit malicious actors. Sanctions status and Treasury’s stated concerns are distinct matters.

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Did Treasury withdraw the mixer-reporting plan?

A report published by Printhereum on October 6, 2026, says Treasury moved to withdraw a broad proposal that would have imposed reporting requirements related to mixers. The official withdrawal notice was not surfaced alongside that report, so the withdrawal should be attributed to the news report rather than presented as confirmed agency action. The reported proposal withdrawal is separate from both the sanctions delisting and Storm’s criminal case.

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