Home Crypto News DOJ Drops Part of Tornado Cash Case as Trump-Era Crypto Leniency Grows

DOJ Drops Part of Tornado Cash Case as Trump-Era Crypto Leniency Grows

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DOJ Drops Part of Tornado Cash Case as Trump-Era Crypto Leniency Grows

The U.S. Department of Justice (DOJ) has dropped a portion of its criminal case against Roman Storm, the co-founder of Tornado Cash, a popular crypto mixing service.

This decision comes just weeks before Storm’s trial, which is scheduled to begin on July 14, 2025. The move signals a potential shift in the government’s stance toward crypto-related enforcement, especially as regulatory sentiment softens under the current political climate.

Roman Storm Faces Charges of Money Laundering, Unlicensed Business, and Sanctions Violations

Storm was originally charged with conspiracy to commit money laundering, conspiracy to operate an unlicensed money transmitting business, and violations of sanctions laws.

The DOJ’s partial withdrawal may reflect challenges in proving certain elements of the case, particularly regarding the open-source nature of Tornado Cash and its decentralized structure.

This development also comes at a time when the broader U.S. crypto landscape is seeing increased political support, with pro-crypto voices gaining momentum, including from President Donald Trump.

Legal experts suggest that the dropped charges could set a precedent in how the government pursues cases involving decentralized finance (DeFi) platforms and developers.

Despite the partial dismissal, Storm still faces serious charges, and the upcoming trial remains a pivotal moment for crypto regulation and legal accountability.

DOJ Scales Back Crypto Crime Prosecutions, Reflecting Trump-Era Policy Shift

The dismissal of charges for Strom comes in the aftermath of the U.S. Department of Justice instructing federal prosecutors to scale back their pursuit of specific cryptocurrency-related crimes, signaling a shift in enforcement priorities under the Trump administration.

This directive reflects a broader trend of reduced emphasis on white-collar criminal investigations during Trump’s tenure.

The move suggests a more lenient approach toward the crypto industry, potentially focusing resources on more severe or violent crimes instead.

Critics argue this could weaken regulatory oversight in a fast-growing financial sector prone to abuse, while supporters believe it encourages innovation and reduces unnecessary legal pressure on blockchain developers and businesses.

The change marks a significant moment in how the U.S. government balances enforcement with fostering technological advancement in the digital asset space.

Also Read: Binance Co-Founder Changpeng Zhao Confirms He Has Officially Filled For a Presidential Pardon from Trump

Prosecutors Drop Key Money Transmission Charge Against Roman Storm

Prosecutors have decided not to move forward with the charge under Title 18 U.S. Code § 1960(b)(1)(B), which forms part of Count Two in the indictment against Roman Storm.

This specific charge accused Storm of failing to register Tornado Cash as a money transmitting business.

However, the Department of Justice will still pursue the more serious allegations against him.

These include conspiracy to commit money laundering, conspiracy to violate the International Emergency Economic Powers Act (IEEPA), and conspiracy to transmit funds obtained through unlawful means, as detailed in the remaining portion of Count Two.

The decision narrows the scope of the case but leaves key criminal charges intact ahead of Storm’s upcoming trial.

Also Read: United States DOJ Moves Forward with Crypto Fraud Case Targeting Former SafeMoon CEO

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Nausheen Thusoo
Nausheen has three years of devoted experience covering business and finance. She is aware of the constantly changing financial landscape, especially in the rapidly growing cryptocurrency space. Her ability to simplify difficult financial ideas into understandable stories and her analytical thinking make her articles valuable for both novice and experienced readers.She has written about a wide range of subjects, including investing methods, market trends, and regulatory changes pertaining to the cryptocurrency industry. She has worked with Reuter, Coingape and Bankless times. Nausheen blends a talent for narrative with meticulous research skills. She is also skilled at establishing connections with business leaders so they can offer unique perspectives and interviews that enhance their reporting

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