Roman Storm, developer of the Tornado Cash crypto mixer, faces ongoing legal challenges as his defense accuses prosecutors of withholding critical evidence related to FinCEN communications. The defense contends that messages from the Financial Crimes Enforcement Network (FinCEN) indicate that non-custodial cryptocurrency mixing services like Tornado Cash do not meet the legal definition of "money transmitting businesses," a classification central to the charges against Storm.
These withheld communications, also cited in the Samourai Wallet developers' case, reportedly show that because users retain full control of their assets, such services likely do not qualify as regulated money services businesses under US law. Despite a recent federal court ruling that denied OFAC’s attempt to reimpose sanctions on Tornado Cash, prosecutors continue to pursue Storm’s trial, scheduled for July 14, 2025, having dropped one money transmitting-related charge following new Department of Justice guidance discouraging enforcement actions against crypto mixers.
The defense seeks disclosure of all FinCEN-related communications to challenge remaining charges including conspiracy to launder money and violation of sanctions. Prosecutors deny withholding evidence and maintain that all relevant documents were submitted timely during legal discovery.
The accusations have ignited debates within the cryptocurrency industry concerning regulatory clarity, prosecution practices, and potential negative impacts on open-source crypto innovation.