In the Tornado Cash case, attorneys for developer Roman Storm accused US prosecutors of withholding critical exculpatory evidence. According to a letter dated May 16 to Judge Katherine Polk Failla, the defense contends that contacts between the Department of Justice and FinCEN from 2023 indicate that non-custodial crypto mixers like Tornado Cash do not fall under the legal definition of a “money transmitting business.” The defense argues that prosecutors were aware of this guidance but proceeded with charges against Storm regardless.
Source: Court Listener
The prosecution denies any wrongdoing, asserting that they submitted the FinCEN communications within the stipulated timeframe during legal discovery. However, Storm’s attorneys contend that the government’s actions were misleading, especially given the similarities between this case and that of the Samourai Wallet developers, who faced similar charges.
This controversy arises amidst broader legal challenges concerning the regulation of decentralized technologies. In January 2025, a U.S. court overturned sanctions against Tornado Cash, ruling that the Treasury’s Office of Foreign Assets Control (OFAC) had overstepped its authority. Despite this, federal prosecutors continue to pursue the case against Storm, raising questions about the balance between enforcing financial regulations and preserving technological innovation.
The outcome of this case could have far-reaching implications for developers of decentralized platforms and the future of financial privacy in the digital age
