Crypto Privacy Under Fire as DOJ Seeks Retrial of Tornado Cash Developer

The post Crypto Privacy Under Fire as DOJ Seeks Retrial of Tornado Cash Developer appeared first on Coinpedia Fintech News

The U.S. Department of Justice has asked a federal court in New York to retry Roman Storm on two criminal charges that a jury failed to resolve during his first trial. Prosecutors informed the court on March 9 that they intend to pursue a second trial on conspiracy to commit money laundering and conspiracy to violate sanctions laws. The government proposed starting the retrial in early October.

Storm was previously convicted in August 2025 for operating an unlicensed money transmitting business linked to the crypto mixing service Tornado Cash. However, the jury could not reach a verdict on the other two charges, leaving those counts unresolved.

Retrial Request Filed in Federal Court

According to reporting from journalist Eleanor Terrett, prosecutors notified the judge overseeing the case that they plan to move forward with a retrial. The request comes while Storm’s legal team is still waiting for a ruling on a Rule 29 motion that seeks to overturn his conviction on the unlicensed money transmitter charge.

The original case centered on the government’s claim that Tornado Cash was used to process more than $1 billion in illicit funds. Prosecutors alleged that cybercriminal groups, including hackers linked to North Korea, used the protocol to move stolen cryptocurrency through blockchain networks.

If the retrial proceeds, Storm will again face the money laundering and sanctions-related charges that were left undecided in the first trial.

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Crypto Mixers on the Loop

The legal developments come as U.S. officials acknowledge that crypto mixing tools can also serve legitimate purposes.

A recent update from the Treasury Department stated that privacy tools may be used to shield sensitive financial information. According to the agency, some individuals rely on mixers to protect personal wealth, business payments, charitable donations, or consumer spending details from public blockchain records.

Crypto mixers such as Tornado Cash allow users to pool transactions and then redistribute them to new addresses. The process can make it difficult to trace the origin of funds on transparent blockchains.

Industry Reaction

The retrial decision drew criticism from several voices in the crypto sector. Policy advocate Amanda Tuminelli said prosecutors failed to convince the jury during the first trial and argued the government’s case contained legal and technical flaws. 

Whereas, Investor Frank Corva also called the move misguided, warning it could hurt the United States’ ambitions to lead in the crypto sector. 

At the same time, some other analysts pointed to a recent Treasury update noting that crypto mixers can have legitimate uses, such as protecting personal wealth, business payments, and donations, which they view as progress in the broader debate over financial privacy tools.

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