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Tornado Cash developer Roman Storm retrial postponed until…

2026-08-27 00:11:14
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Why was Roman Storm's retrial postponed?

Tornado Cash developer Roman Storm will face a retrial on April 26, 2027 on outstanding money laundering and sanctions charges, while his previous motion for acquittal of existing unlicensed remittances remains pending. U.S. District Judge Katherine Polk Failla ordered on Tuesday that the retrial would begin in Thurgood Marshall Court in New York. The final pretrial meeting is scheduled for April 20, six days before jury selection begins. Prosecutors had previously requested a retrial in October 2026, but Storm's motion for acquittal filed in September 2025 has not yet been decided. The court heard oral arguments on the motion in April.

Storm is the co-founder of Tornado Cash, a cryptocurrency hybrid protocol designed to hide the link between deposits and withdrawals. Prosecutors accused him of helping launder more than $1 billion in illegal funds through the service. In August 2025, the jury delivered a mixed verdict: Storm was found guilty of one count of undocumented money transfer, but the jury failed to reach agreement on separate charges of money laundering and evasion of sanctions. Prosecutors then elected to retry him on both charges. If convicted on both outstanding counts, Storm could face up to 40 years in prison.

What does Storm's motion for not guilty challenge?

The currently pending motion for acquittal does not address the two outstanding charges that are being retried. Storm's motion under Rule 29 of the Federal Rules of Criminal Procedure on the charge for which he was already convicted-namely, conspiracy to operate an unlicensed money transfer business (under 18 U.S.C. § 1960)-argued that the evidence was not legally sufficient to support the conviction.

His lawyers also cited a recent Supreme Court ruling against Internet service provider Cox Communications. In that case, the Supreme Court held that Cox could not be held accountable simply because certain customers used their Internet services to commit copyright infringement. Storm's defense team believes this reasoning may apply to developers whose software can be used legitimately but can also be misused by third parties. Although the motion for acquittal involved a Section 1960 conviction rather than two counts for retrial, Judge Failla's reasoning on developer liability issues may affect how the parties debate the remaining money laundering and sanctions evasion charges. The court has not yet ruled on whether the Supreme Court ruling will materially change Storm's case.

Investor revelation

Storm's case has implications that go beyond Tornado Cash itself. The ruling on developer liability could affect how U.S. prosecutors treat developers who operate decentralized protocols and lack direct control over every transaction users make through their software.

Why did Chainalysis become part of Storm's defense?

Storm also turned its attention to blockchain analytics company Chainalysis, whose analytical work helped the government investigate Tornado Cash transactions. Court documents show Chainalysis itself operated as a repeater for Tornado Cash during 2022 and earned fees from it. Repeaters help users withdraw funds from Tornado Cash without directly exposing the connection of the withdrawal wallet to the original deposit. Storm cited the campaign on Tuesday, arguing that his lawsuit applied different standards to developers and other companies that interacted with the agreement. "So, the company that helped track my 'criminal' transactions itself profited from the Tornado Cash transaction, and I was sued for the software I helped create." Storm wrote on the X platform. The fact that Chainalysis used Tornado Cash does not in itself prove that its activities were illegal, nor does it prove that Storm cannot be prosecuted. However, its lawyers could use this evidence to question how prosecutors characterized participation in the agreement and whether operating infrastructure related to Tornado Cash necessarily constituted participation in illegal transactions.

What does the case mean for cryptocurrency developers?

This retrial is likely to become another major test of how U.S. criminal law applies to decentralized software. Prosecutors argued that Tornado Cash was known to be used to transfer illicit funds, including transactions related to sanctioned entities, and that its operators were actively involved in maintaining the service's availability. Storm's defense team argued that creating privacy software should not make developers criminally liable for how each user chooses to use the software. Storm criticized prosecutors after setting a new trial date. "The jury was unable to reach agreement on my two most serious charges, and the U.S. Attorney's Office in South New York refused to let go because the case was never just about me, but to make a warning." He wrote. The April 2027 trial date gave both sides months of preparation, but the more immediate event was Judge Failla's ruling on a motion for acquittal. If the ruling is in Storm's favor, its existing Section 1960 conviction will be overturned, but the retrial on two outstanding money laundering and sanctions evasion charges will continue. However, the reasoning behind Failla's ruling may still affect how the parties debate the charges before a second jury. For cryptocurrency developers, privacy agreements and decentralized financial projects, the ruling may be almost as important as the final verdict, because it helps define when writing and maintaining software can be crossed into the field of criminal liability due to user behavior.

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