DOJ Seeks Retrial for Tornado Cash Developer Roman Storm

• DOJ asks court to retry Roman Storm on money laundering and sanctions conspiracy charges after 2025 jury deadlock.
• Storm already convicted of running an unlicensed money-transmitting business; Rule 29 motion seeks to overturn verdict.
• Case draws crypto industry attention as debate grows over privacy tools, mixers, and open-source developer liability.

Federal prosecutors in the Southern District of New York asked Judge Katherine Polk Failla to schedule a retrial for Tornado Cash co-founder Roman Storm. The request, filed in March 2026, targets two charges where a Manhattan jury deadlocked in August 2025. Prosecutors want to retry Storm on conspiracy to commit money laundering and conspiracy to violate U.S. sanctions.

Prosecutors Move To Retry Hung Counts

According to reporting by journalist Eleanor Terrett, the U.S. Department of Justice requested a retrial on the unresolved charges. Prosecutors proposed early October dates, including October 5 or October 12.

The charges carry a combined maximum sentence of up to 40 years if a conviction occurs. Meanwhile, Storm’s Rule 29 motion remains pending before the court.

That motion seeks to overturn his conviction for conspiracy to operate an unlicensed money-transmitting business. A Manhattan jury issued that conviction during the first trial in August 2025.

However, jurors failed to reach unanimous decisions on the other two conspiracy counts after four days of deliberations. The judge also issued an Allen charge urging jurors to continue discussions before the deadlock.

Policy Shift Adds Context

The retrial request arrives as the Justice Department has updated its stance toward digital assets. In April 2025, Deputy Attorney General Todd Blanche issued a memo outlining a new enforcement approach.

According to the memo, the DOJ said it does not act as a digital assets regulator. Prosecutors should also avoid targeting exchanges, wallets, or mixing services for user actions.

At the same time, the U.S. Treasury discussed digital asset privacy tools in a March 2026 report to Congress. The department acknowledged that some users rely on mixers to protect financial privacy on public blockchains.

Tornado Cash Case Draws Industry Attention

The Tornado Cash case has attracted attention from across the crypto industry. Storm argues prosecutors attempt to criminalize open-source software development.

In a post on X, he said another trial could create heavy financial and personal costs. The Free Roman Storm campaign reported more than $5 million in defense funding by January 2026.

Supporters include the Solana Policy Institute, which donated $500,000 to defense funds for Roman Storm and Alexey Pertsev. The Ethereum Foundation also said privacy-focused funding supports their legal defense.

Earlier actions against Tornado Cash also shaped the case timeline. In August 2022, the U.S. Treasury sanctioned the protocol, alleging billions in illicit transactions, including activity linked to North Korea’s Lazarus Group. However, an appellate court later ruled those sanctions unlawful and ordered them lifted.