U.S. Justice Department declines to apply Cox precedent to Tornado Cash case., 2026/04/08 13:10:16

The U.S. Department of Justice has opposed the attempt by Tornado Cash co-founder Roman Storm to leverage a recent Supreme Court ruling regarding the internet service provider Cox Communications and the recording company Sony Music Entertainment to halt his criminal prosecution.

This case involves Sony Music accusing Cox Communications of facilitating copyright infringement. The company was charged with providing access to subscribers found guilty of illegally downloading music and failing to adequately block them. In 2019, the court found Cox liable and ordered a $1 billion compensation; however, the U.S. Supreme Court later overturned this ruling, stating that a provider cannot be held responsible for user actions solely based on awareness of violations.

Roman Storm’s attorneys, who have been found guilty of operating an unlicensed money transfer service, reference this ruling, arguing that the court could similarly dismiss charges against their client, as developers of code are not considered operators of money transfers unless they manage client assets. They contend that the developer of Tornado Cash should not be held accountable for illegal activities conducted by individuals using the service for money laundering.

Nevertheless, the U.S. Department of Justice rejected this reasoning. The agency emphasized that the Cox Communications case pertained to civil liability under copyright law, while Storm faces criminal charges, including money laundering, illegal money transmission, and conspiracy to evade sanctions.

The department clarified that Cox Communications took steps to prevent violations, whereas Storm was aware of the use of Tornado Cash for money laundering and did not act against it. Specifically, this includes $449 million stolen during the Ronin bridge hack, which subsequently flowed through the service. The DOJ also stated that at least 37% of the funds processed through Tornado Cash were linked to significant incidents of which Storm was allegedly aware.

The prosecution insists on a retrial in October 2026 concerning two counts—facilitating money laundering and violating sanctions. Previously, jurors in the Southern District of New York were unable to reach a unanimous verdict on these charges.

Earlier, Ethereum co-founder Vitalik Buterin expressed that the development of privacy-enhancing services should not be deemed a crime. In January, he donated 50 ethers (approximately $170,000) to the legal defense fund for Tornado Cash developers.