DOJ presses Tornado Cash prosecution as Treasury drops mixer reporting plan
Federal prosecutors asked a New York judge to reject Tornado Cash co-founder Roman Storm’s challenge to venue on money-laundering and money-transmission conspiracy counts, citing a recent appeals decision in the Bitcoin Fog case. They argue that a Manhattan customer’s deposits support trying the counts in the district. Storm disputes the government’s claim that he knowingly helped criminal activity through his work on the mixer. He was convicted in August 2025 on one money-transmission conspiracy count and is scheduled for retrial in April 2027. Separately, Treasury is withdrawing a proposed rule that would have imposed enhanced reporting requirements on international crypto mixing, citing concerns about burdens on legitimate activity. That policy move does not repeal criminal laws or decide Storm’s case; the dispute over developers’ responsibility for a service used by criminals remains before the court.
