US prosecutors dispute use of Supreme Court ruling in Tornado Cash developer case

Prosecutors challenge relevance of Supreme Court decision

Storm’s lawyers highlighted the Supreme Court’s March ruling stating that Cox, as an internet service provider, could not be held liable for the copyright infringements committed by its users. The defense claimed that this precedent should influence the money laundering charges brought against Storm, potentially undermining key aspects of the prosecution’s case.

However, the prosecutors argued that the two cases diverge in critical ways. While Cox implemented measures to curtail copyright violations by its users, prosecutors say neither Storm nor the Tornado Cash platform took comparable action to curb illegal activities. Instead, they contend, the development team failed to adopt preventative measures against unlawful use, distinguishing Storm’s conduct from that of Cox.

Prosecutors alleged that Storm misled victims who inquired about his control over the platform, making false statements while making more than 250 infrastructure changes to Tornado Cash with his team and deliberating on measures that might have blocked illicit transactions—only to abandon these potential safeguards entirely.

Authorities further argued that Storm’s response to his platform’s illicit use was largely for appearances, in contrast to Cox’s implementation of mechanisms that they claim effectively addressed 98 percent of the identified violations by its users.

Recent developments in the case and similar prosecutions

Last month, prosecutors requested a retrial on two unresolved charges in Storm’s case. They have put forward a proposal for additional proceedings, targeting the start of this separate phase for October 2026.

Back in August, a jury found Roman Storm guilty of operating an unlicensed money transfer business. However, jurors were unable to reach a unanimous verdict on the more serious allegations of money laundering and sanctions violations.

Matthew J Galeotti, who is serving as acting deputy assistant attorney general in the Department of Justice’s Criminal Division, clarified that while writing code is not a crime in itself, investigations will persist for those who knowingly facilitate illegal activity.

A parallel case involving Samourai Wallet—a service similar to Tornado Cash—recently ended with the platform’s co-founders pleading guilty to money laundering and receiving prison sentences. In that prosecution, Keonne Rodriguez was sentenced to five years, while William Lonergan Hill received a four-year sentence.