DOJ Refocuses Crypto Enforcement, Uncertainty Looms for Tornado Cash

In a big change, the U.S. Department of Justice (DOJ) said it will stop focusing on taking legal action against crypto developers and infrastructure companies. The April 7 memo from Deputy Attorney General Todd Blanche explains a change in focus: going after bad people who use permissionless tools for crimes like terrorism, trafficking, and others instead of going after the people who make the tools. According to experts in the field, like Jason Gottlieb, partner at Morrison Cohen, this change means a long-overdue course correction.

Impact on Tornado Cash Developers

Policy change comes as Roman Storm and Roman Semenov, Tornado Cash’s creators, faces a high-profile criminal case. In 2023, the two were charged with planning to launder money, running an illegal money-transfer business, and breaking U.S. sanctions rules. Their protocol—made up of smart contracts that can’t be changed and a user interface that focuses on privacy—was reportedly used to wash money linked to North Korean cybercrime. Notably, the fees are aimed at the coders rather than those who use Tornado Cash.

The Grey Zone: Code or Conduct?

The case raises a big question: Can software writers be charged with crimes for how other people use their open-source code? Even though Tornado Cash’s smart contracts can’t be changed, authorities say Storm and Semenov improved the tool’s privacy features and maintained a relayer service to hide transactions. According to reports, they even added sanctions, checking that they knew wouldn’t work. 

Previous rulings may offer hope

The judge in this case, Katherine Polk Failla, has already thrown out a class-action lawsuit against Uniswap Labs, saying that the company that made smart contracts is not responsible for how a third party uses them. In 2025, the Second Circuit confirmed that decision, sending the message that writing open-source code is not illegal. Defence lawyers hope this approach will prevail, especially since the Fifth Circuit recently ruled that Tornado Cash software is code, not property, and hence not subject to the IEEPA.

Conclusion

The DOJ’s changing stance could affect the Tornado Cash case, but this is not certain. If Storm and Semenov are found guilty, it could be very bad for future privacy-focused crypto innovations.