DOJ Will Still Pursue Roman Storm Case Despite Blanche Memo, Prosecutors Say
The U.S. Department of Justice (DOJ) announced on Thursday that it will drop one charge against Roman Storm, a developer of the Tornado Cash cryptocurrency mixer. This decision stems from a recent policy memo issued by Deputy Attorney General Todd Blanche on April 7, 2025. The memo directs prosecutors to avoid pursuing cases where regulations are unclear or don’t meet specific criteria, marking a shift away from “regulation by prosecution.”
The DOJ will no longer pursue the charge alleging Storm failed to comply with money transmitter business registration rules. However, the trial scheduled for July 14, 2025, will proceed on the remaining charges: knowingly transmitting funds tied to crimes, conspiracy to commit money laundering, and conspiracy to violate sanctions law. The DOJ stated that its decision aligns with the letter and spirit of the April 7th memo.
Brian Klein of Waymaker LLP, Storm’s legal representative, expressed his firm’s belief that the case should have never been filed. Klein argued that the prosecution threatens the entire cryptocurrency industry and that dismissal is in the interest of justice. He further contends that the case is inconsistent with policies of previous administrations and the principles outlined in the DOJ’s recent cryptocurrency guidance memo. Klein’s views were also shared at CoinDesk’s Consensus 2025 conference in Toronto.
A key element of the defense is the assertion that coding itself, a form of expression, is protected under free speech principles in the U.S. This argument positions coding akin to writing a book or engaging in other expressive activities. The implications of this case extend beyond Storm’s individual circumstances, highlighting broader concerns within the crypto industry regarding regulatory clarity and the potential chilling effect of aggressive prosecutions based on ambiguous regulations. The impact of the DOJ’s revised approach, spurred by the April 7th memo, will likely be felt in other similar cases, such as the one involving Samourai Wallet developers, which has been temporarily paused for review. The case underscores the ongoing tension between law enforcement efforts to combat illicit financial activity and the need to balance those efforts with the promotion of innovation and free expression in the evolving cryptocurrency landscape.
