Tornado Cash: DOJ dey find make dem try Roman Storm again for October 2026

U.S. prosecutors for Southern District of New York reject Roman Storm dem claim make dem dismiss Tornado Cash case and dem dey push make dem do retrial as early as October 2026. For letter to Judge Katherine Failla, DOJ talk say Storm base him case on Supreme Court precedent (Cox Communications v. Sony Music) no match Tornado Cash facts. Prosecutors still talk say Storm AML controls no effective and any "half-measures" easy to sidestep. The filing give important context for traders: OFAC sanction Tornado Cash August 2022 say e no put proper controls, but that sanction basis later overturn for March 2025 after appeals court talk say OFAC cross im authority over immutable, decentralized smart contracts. Procedurally, dem detain Storm and charge am for conspiracy to commit money laundering, sanctions violations, and running unlicensed money-transmitting business. Jury convict am for one count August but dem deadlock on two counts. DOJ dey ask for new trial window Oct 5–12, 2026, and Rule 29 motion hearing set for April 9. Ruling on that motion fit decide if dem go retry the deadlocked Tornado Cash-related counts. Trading takeaway: renewed legal uncertainty around Tornado Cash fit raise compliance and enforcement risk premia for privacy- and mixing-adjacent flows, even as parts of earlier OFAC sanctions ruling dem partially overturn.