PANews reported on May 16 that according to The Block, the U.S. Southern District of New York Attorney's Office announced on May 15 that it would withdraw part of the charges of "operating an unlicensed money transmission business" against Tornado Cash co-founder Roman Storm, but would continue to prosecute him for money laundering, violating the International Emergency Economic Powers Act, and other crimes. The case is scheduled for a formal trial on July 14. The U.S. Department of Justice issued a policy memorandum in April, announcing that it would stop the practice of "prosecution instead of regulation" and focus on cracking down on cryptocurrency crimes directly endangering investors, such as terrorism financing and hacking, rather than targeting market intermediaries. This shift is seen as an important adjustment to digital asset regulatory strategy during the Trump administration.
The DeFi Education Fund stated on social media that while the Department of Justice's policy adjustment is consistent with the memorandum's spirit, it failed to fully correct its erroneous stance in the Tornado Cash case. Peter Van Valkenburgh, executive director of Coin Center, criticized the retained charges for legal ambiguity and argued that they should be withdrawn under the principle of "favorable to the defendant".
