The U.S. Department of Justice has rejected a key legal argument from Roman Storm, intensifying one of the most closely watched cases in crypto—and raising major questions about whether developers can be held criminally liable for decentralized tools.
Storm’s legal team attempted to use a recent Supreme Court ruling—focused on limiting liability for internet service providers—as part of a defense that Tornado Cash functioned as a neutral tool.
However, federal prosecutors dismissed the argument as “inapplicable,” stating the case involved civil copyright liability—not criminal charges like those Storm faces.
The DOJ emphasized that the situations are fundamentally different, arguing that the precedent cannot be used to justify dismissing the charges.
At the core of the government’s argument is that Storm was not simply a passive developer. Prosecutors allege that he:
This directly challenges the defense’s claim that Tornado Cash operated as a neutral, decentralized tool beyond the control of its creators.
Storm was previously convicted on one count related to operating an unlicensed money-transmitting business, while a jury failed to reach a verdict on additional charges tied to money laundering and sanctions violations—opening the door for a retrial.
Now, the DOJ’s rejection keeps the case moving forward, with potentially severe consequences if additional charges are upheld.
This case is shaping up to be a landmark moment for the industry, as it tests a fundamental question:
Can developers be held responsible for how users interact with decentralized software?
The outcome could:
This isn’t just a legal dispute—it’s a battle over the future of decentralized technology.
The bigger takeaway:
The line between code and responsibility is being redrawn in real time. And depending on how this case unfolds, it could determine whether building decentralized tools is protected innovation—or a legal risk.
The crypto market is entering the end of an era as CME Group officially launches 24/7 Bitcoin and…
Asset management giant VanEck has officially launched the first-ever U.S. spot ETF tied directly to BNB, the native…
Layer-1 blockchain Sui experienced another major network outage on May 28 after block production and transaction processing…
The Depository Trust & Clearing Corporation (DTCC) has announced plans to connect its tokenization infrastructure to the Stellar blockchain,…
Robinhood is officially entering the “agentic AI” era after unveiling a new beta feature that…
Bitcoin financial services company Fold has officially begun rolling out its long-awaited Bitcoin rewards credit card, allowing…