Catenaa, Wednesday, March 11, 2026- US federal prosecutors are moving to retry Roman Storm, co-founder of the cryptocurrency privacy tool Tornado Cash, in a case that could shape legal precedents for software developers working with open-source blockchain protocols, according to a Treasury Press Release.
A filing Monday in the US District Court for the Southern District of New York requests that Judge Katherine Polk Failla schedule a three-week retrial starting around October 5 or October 12, 2026.
The retrial would focus on two unresolved felony charges after jurors in Storm’s previous trial failed to reach a unanimous decision.
The charges include conspiracy to commit money laundering and conspiracy to violate US sanctions. Conviction on both counts could bring a combined maximum sentence of 40 years, in addition to penalties from his earlier conviction for operating an unlicensed money transmitting business. That charge alone carries up to five years in federal prison. Storm remains free on bond while awaiting further proceedings.
Prosecutors noted that scheduling the retrial for October would minimize potential delays and conflicts. Storm’s legal team has argued that setting a date now is premature because a motion to overturn the existing conviction is scheduled for hearing on April 9. Prosecutors indicated flexibility but stressed the fall window would suit both sides.
Storm took to the social platform X to criticize the retrial, framing it as punishment for developing open-source code tied to a protocol he does not control. He has also indicated that his legal defense funds are largely depleted despite donations from the crypto community.
The case has drawn support from blockchain advocates and prominent figures, including Vitalik Buterin, who has highlighted the role of privacy tools in safeguarding users’ financial data.
Advocacy groups have raised millions to support Storm’s defense, emphasizing the risk of criminal liability being extended to developers whose tools are misused by others.
Authorities contend Tornado Cash enabled laundering of more than $1 billion linked to criminal activity, including transactions tied to North Korean cybercriminal groups. Treasury Department estimates suggest over $7 billion in cryptocurrency moved through the platform since its 2019 launch.
The legal landscape has evolved. In 2025, US sanctions against Tornado Cash were lifted after a court ruled that immutable smart contracts could not be treated as property subject to sanctions. Legal experts say Storm’s retrial may influence regulatory approaches to decentralized finance and open-source software worldwide.
Tornado Cash was designed to obscure on-chain transaction trails using zero-knowledge proofs, offering privacy for legitimate users while also attracting illicit use.
The case tests the boundary between technological innovation and financial accountability in decentralized networks.
