Tornado Cash Case: Prosecutors Reject Defense Bid to Apply Supreme Court Ruling - Crypto Economy

TL;DR:

• The prosecution rejected Tornado Cash’s argument applying a Supreme Court ruling on Cox to its case, calling it “inapplicable.”
• Roman Storm was found guilty in August on one count of unlicensed money transmission; two remaining counts are unresolved and heading to a new trial.
• Prosecutors allege that Storm implemented more than 250 changes to the protocol’s infrastructure and took no steps to stop illicit activity.

Federal prosecutors in the United States rejected the arguments presented by the defense of Roman Storm, co-founder of the cryptocurrency mixer Tornado Cash, which sought to apply a recent Supreme Court ruling to push for the dismissal of the criminal charges against him. In a letter addressed to Judge Katherine Polk Failla, prosecutors described the cited precedent as “inapplicable” to the Storm case.

Last week, Storm’s attorneys had submitted a letter to the judge pointing to the March ruling involving internet provider Cox, in which the Supreme Court determined that Cox should not be held liable for the unlawful conduct of its users in a musical copyright case. The defense argued that the same reasoning could benefit their client.

What Do the Prosecutors Say?

Prosecutors challenged that reasoning by highlighting substantial differences between the two cases. While the Supreme Court recognized that Cox actively discouraged copyright infringement, prosecutors maintain that Storm and Tornado Cash took no concrete steps to prevent the illicit use of Tornado Cash. According to the indictment, Storm implemented more than 250 changes to the protocol‘s infrastructure during the period under investigation, internally discussed measures to limit criminal activity, and deliberately chose not to implement them. Prosecutors also claim that Storm lied to victims by telling them he had little control over the protocol.

“The defendant’s response to the criminal use of his business was, at best, mere window dressing and, at worst, deliberate misdirection,” prosecutors wrote in their letter.


The Tornado Cash Trial Seems to Have No End

Storm was found guilty in August on one count of unlicensed money transmission, though the jury failed to reach a verdict on the two remaining counts related to money laundering and sanctions evasion. Last month, prosecutors formally requested the holding of a new trial to resolve those charges, suggesting it begin in October 2026.

The case has drawn support from within the industry Vitalik Buterin, co-founder of Ethereum, stated in January that he is an active user of privacy tools and highlighted the technical quality of Storm’s work on Tornado Cash. The proceedings were initiated during the Biden administration and remain one of the most closely watched cases for their potential implications for the development of privacy software in cryptocurrencies.