{ "id": 69567, "date": "2026-04-08T10:05:21", "date_gmt": "2026-04-08T03:05:21", "guid": { "rendered": "https:\/\/hbbgroup.net\/us-prosecutors-reject-tornado-cash-co-founders-argument-for-dismissal\/" }, "modified": "2026-04-08T10:05:21", "modified_gmt": "2026-04-08T03:05:21", "slug": "us-prosecutors-reject-tornado-cash-co-founders-argument-for-dismissal", "status": "publish", "type": "post", "link": "https:\/\/hbbgroup.net\/en_us\/us-prosecutors-reject-tornado-cash-co-founders-argument-for-dismissal\/", "title": { "rendered": "US prosecutors reject Tornado Cash co-founder\u2018s argument for dismissal" }, "content": { "rendered": "
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Jay Clayton, the US Attorney for the Southern District of New York (SDNY) and former chair of the Securities and Exchange Commission (SEC), has penned a response to Tornado Cash co-founder Roman Storm\u2019s motion for acquittal, criticizing his alleged criminal behavior.\u00a0\u00a0<\/p>\n

In a Tuesday filing in the US District Court for the Southern District of New York, Clayton said that Storm\u2019s criminal use of Tornado Cash was \u201cwindow dressing at best and outright misdirection at worst,\u201d rejecting arguments that he be allowed to use a civil copyright case in his defense.<\/p>\n

The US Attorney\u2019s filing followed a Thursday notice from Storm\u2019s lawyers saying they intended to use a 2026 Supreme Court case, Cox Communications, Inc. v. Sony Music Entertainment<\/em>, as part of an argument about the Tornado Cash co-founder\u2019s intent to participate in the crimes of which he is accused: conspiracy to commit money laundering and conspiracy to violate sanctions.<\/p>\n

Clayton said that Storm\u2019s conduct \u201cbears no resemblance\u201d to that in the Cox<\/em> case, which involved civil liability for copyright infringement. According to the US Attorney, there was no evidence that the Tornado Cash co-founder implemented effective anti-money-laundering measures.<\/p>\n

\u201cThe defendant\u2019s conduct simply is not comparable to the conduct at issue in Cox,\u201d said Clayton. \u201cIn any event, a civil copyright case has no relevance here in the first place.\u201d<\/p>\n

\"Law,
Source: SDNY<\/em><\/figcaption><\/figure>\n

Last August, a jury convicted Storm<\/a> of conspiracy to operate an unlicensed money transmitting business, but deadlocked on conspiracy to commit money laundering and conspiracy to violate sanctions charges, opening the door to a potential retrial. The case has drawn widespread attention from the crypto industry for how developers may be held responsible for their code.<\/p>\n

Prosecutors and defense attorneys in the Storm case are scheduled to meet on Thursday.\u00a0<\/p>\n

Related: <\/strong><\/em>US lawmakers move to protect blockchain devs from prosecution<\/strong><\/em><\/a><\/p>\n

Attorney behind memo calling for end to crypto \u201cregulation by prosecution\u201d gets top DOJ job<\/h2>\n

Last week, US President Donald Trump fired Attorney General Pam Bondi, substituting Deputy AG Todd Blanche as acting head of the Justice Department until the Senate can vote on a replacement. Blanche, who previously acted as Trump\u2019s personal attorney, also penned an April 2025 memo<\/a> calling for the end of what he called \u201cregulation by prosecution\u201d in the Justice Department.<\/p>\n

Although Blanche did not call out Storm by name, he did say that the department will \u201cnot pursue actions against the platforms that [criminal] enterprises utilize to conduct their illegal activities\u201d and called for an end to cases inconsistent with that goal.<\/p>\n