U.S. seeks October retrial of Tornado Cash co-founder Storm

U.S. prosecutors asked a federal judge to set an Oct. 5-12 start date for a retrial of Tornado Cash co-founder Roman Storm on conspiracy charges tied to money laundering and U.S. sanctions. They told the court the case would take about three weeks in Manhattan federal court.

In a letter filed to U.S. District Judge Katherine Polk Failla in the Southern District of New York, the government wrote it is prepared to retry the case as early as the spring, between March and May, but Storm’s lawyers have indicated they are unavailable until late 2026. Prosecutors urged the court to select early-October dates now to secure witnesses and ensure trial readiness.

The request follows a split verdict reached in August. Jurors found Storm guilty of conspiring to operate an unlicensed money transmitting business, but could not reach unanimous decisions on two other counts: conspiracy to commit money laundering and conspiracy to violate U.S. sanctions. Storm pleaded not guilty to all counts.

In October, Storm moved for a judgment of acquittal on the transmitting-business conviction, arguing the evidence did not show he intended to facilitate illicit use of Tornado Cash. The court is set to hear arguments on that motion in early April. Defense counsel has told prosecutors a retrial schedule is premature while that motion is pending, according to the government’s letter.

In a post on X, Storm said the two charges being retried could carry up to 40 years in federal prison. He argued he’s being targeted for writing open-source code tied to a protocol he doesn’t control and for transactions he never handled. He added that the first jury couldn’t reach a unanimous verdict on those counts, yet SDNY prosecutors are pursuing another trial in hopes of a different outcome.

Amanda Tuminelli, chief legal officer at the DeFi Education Fund, described the decision to seek a retrial as “incredibly disappointing” and argued prosecutors failed to persuade jurors the first time and made “obvious mistakes,” including calling irrelevant witnesses and misreading blockchain evidence. Previously, Vitalik Buterin condemned the criminal prosecution of Tornado Cash developers.

The filing arrived the same month the U.S. Treasury sent a report to Congress noting that crypto mixing services can have lawful uses, including helping individuals maintain more privacy in their consumer spending. In his post, Storm also referenced an April Justice Department memo stating the agency “is not a digital assets regulator” and would “no longer pursue litigation or enforcement actions that have the effect of superimposing regulatory frameworks on digital assets.”

Tornado Cash is an open-source crypto mixer that pools transactions to increase privacy on public blockchains by making it harder to trace funds. The retrial will focus on the two unresolved conspiracy counts. The court has not ruled on Storm’s motion challenging his conviction on the unlicensed money transmitting charge.