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Prosecutors reject dismissal bid in Tornado Cash co-founder’s case

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Crypto Breaking News

In a high-stakes move that sharpens the focus on developer responsibility in crypto tooling, prosecutors in the U.S. Attorney’s Office for the Southern District of New York have asked a federal court to reject Tornado Cash co-founder Roman Storm’s bid for acquittal. The filing centers on the contention that Storm’s alleged actions go beyond a civil copyright dispute and implicate conspiracies to commit money laundering and sanctions violations.

Jay Clayton, the SDNY attorney who previously led the U.S. Securities and Exchange Commission, argued in court papers that Storm’s use of Tornado Cash was “window dressing at best and outright misdirection at worst.” The filing criticized Storm’s attempt to frame his defense around a civil copyright case, insisting there is no evidentiary basis for equating his conduct with civil liability and that such a line of defense is irrelevant to the criminal charges at hand. The motion responded to Storm’s plan to cite a 2026 Supreme Court case, Cox Communications, Inc. v. Sony Music Entertainment, as part of an argument about Storm’s intent to participate in the criminal activity prosecutors allege.

According to the SDNY, Storm’s alleged conduct bears little resemblance to the facts in the Cox case, which dealt with copyright infringement in a civil context. The government contends there is no evidence that Storm or Tornado Cash’s developers implemented any effective anti-money-laundering controls, a point Clayton stressed in the filing.

“The defendant’s conduct simply is not comparable to the conduct at issue in Cox,” Clayton said. “In any event, a civil copyright case has no relevance here in the first place.”

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Last August, a jury convicted Storm of conspiracy to operate an unlicensed money transmitting business, but the panel deadlocked on two other charges — conspiracy to commit money laundering and conspiracy to violate sanctions — leaving the possibility of a retrial on those counts. The case has become a flashpoint in the broader debate over whether developers of open-source crypto tools can be held legally liable for how their code is used in illicit finance schemes.

Prosecutors and Storm’s defense team were slated to meet on the following Thursday to discuss the path ahead, including the possibility of a retrial date. In the meantime, the government has signaled continued pursuit of the remaining charges, while the defense has pressed for a dismissal or a narrow resolution based on civil-law considerations.

In a contemporaneous political thread surrounding the case, the conversation extended beyond the courtroom doors. Last week, reports circulated that U.S. lawmakers were advancing proposals intended to shield blockchain developers from broad prosecution, signaling a regulatory ambition to distinguish between personal risk and platform-level liability.

Key takeaways

  • The SDNY explicitly rejects Roman Storm’s attempt to leverage Cox Communications as a defense, asserting the criminal nature of the alleged activity is not comparable to civil copyright disputes.
  • Storm was convicted on conspiracy to operate an unlicensed money transmitting business, while two related charges ended in a mistrial, keeping the door open for a retrial on those counts.
  • The case amplifies the ongoing debate about whether developers behind open-source crypto projects can be held criminally liable for how others use their code.
  • News of a potential October retrial underscores the government’s intent to pursue the remaining charges, even as questions about evidentiary standards and defense strategy persist.
  • In parallel, U.S. policymakers continue to explore protections for blockchain developers, highlighting tensions between enforcement goals and innovation incentives.
  • The evolving DOJ posture, including commentary associated with acting Attorney General Todd Blanche, could influence how aggressively prosecutors pursue similar cases and how they frame regulatory boundaries around crypto platforms.

Courts, cases and a shifting DOJ posture

Clayton’s filing frames the Storm case within a larger legal question: when, if ever, does enabling code cross the line into criminal participation? The defense’s tactic of invoking a civil copyright precedent appears designed to downplay Storm’s alleged role in facilitating illicit activity, but prosecutors argue that the underlying conduct extends far beyond such civil concerns. The government’s stance rests on an assertion that there was no adequate safeguard against abuse by Tornado Cash’s tools, a factor central to charges of money laundering conspiracies and sanctions violations.

The legal strategy in play here matters beyond one defendant. It tests the boundaries of developer liability for open-source projects and raises critical questions about how prosecutors evaluate intent and control in decentralized tooling. If civil analogies or civil-law defenses fail to translate to criminal contexts, the door may remain open for tougher scrutiny of developers whose code can be used for illicit ends—even when they claim no direct involvement in wrongdoing.

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Meanwhile, the timing of the potential retrial adds a layer of strategic calculus for both sides. The SDNY has requested October as a possible window for re-presenting the evidence on the two previously deadlocked counts, but no date has been officially set as of now. The outcome could influence how similar cases are positioned in the future and how aggressively prosecutors pursue open-source projects that enable or facilitate illicit activity, including cross-border sanctions evasion.

DOJ policy signals and the broader regulatory backdrop

The Storm case sits at the intersection of criminal enforcement and policy signaling within a changing regulatory landscape. Last week, headlines centered on how a reshuffled Justice Department might recalibrate its approach to crypto. Acting Attorney General Todd Blanche, who has previously commented on the need to end what he termed “regulation by prosecution,” laid out a vision that could affect enforcement priorities in the crypto space. While Blanche did not name Storm specifically, he argued that the department should avoid pursuing actions against platforms that criminals leverage to conduct illegal activity and called for alignment between enforcement actions and overarching policy goals. The implications for Tornado Cash and similar tooling are indirect but notable, as prosecutors weigh how to apply anti-money-laundering and sanctions laws to decentralized technologies.

Storm himself has publicly framed the stakes in stark terms. In March, after prosecutors indicated a path toward retrying the two deadlocked counts, he argued that the charges could carry substantial maximum penalties — up to 40 years in federal prison — for actions tied to writing open-source code for a protocol he says he didn’t control and transactions he didn’t touch. The rhetoric underscores the tension between a developer-centric view of code as a public good and a prosecutorial view that code can be weaponized for financial crime when used in unintended or illicit ways.

Beyond the courtroom, the case feeds into a broader policy dialogue about how to balance innovation with enforcement. Lawmakers have floated measures designed to protect blockchain developers from punitive prosecution while maintaining guardrails against illicit finance. The tension between protecting innovation and deterring abuse remains a central theme in crypto regulation discussions, a dynamic that could shape how the industry negotiates risk, compliance, and governance in the years ahead.

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As the legal process unfolds, observers will be watching the interaction between civil-law arguments, criminal liability standards, and the practical realities of open-source development. The Storm case is not just about a single set of charges; it is a bellwether for how courts interpret developer intent, how anti-money-laundering controls are evaluated in decentralized systems, and how policymakers balance the dual aims of fostering innovation and safeguarding financial integrity.

Readers should keep an eye on timing updates from the SDNY as it relates to potential retrial dates and any new motions from either side. The outcome could influence not only this case but the broader approach to crypto tooling and developer accountability as enforcement bodies navigate a rapidly evolving technical landscape.

For policymakers and market participants alike, the central question remains: where should the line be drawn between legitimate open-source development and actions that trigger criminal liability in an environment built on privacy, pseudonymity, and permissionless participation?

As the courtroom drama continues, the crypto community will be watching closely to assess how the balance between innovation and enforcement is negotiated in this era of rapid technological change.

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Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Latest AI news: China’s MizarVision aids Iran

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Latest AI news: China's MizarVision aids Iran

The latest AI news China Iran artificial intelligence military US bases geopolitics story escalated on April 5 when an ABC News exclusive revealed that the US Defense Intelligence Agency has confirmed Iran’s Islamic Revolutionary Guard Corps is actively using AI-enhanced satellite imagery from a Chinese firm called MizarVision to identify, prioritize, and target US military installations across the Middle East.

Summary

  • MizarVision, a partially state-owned Chinese geospatial AI company, has been publishing AI-annotated high-resolution satellite imagery of US military bases on open-source platforms, with automated detection of aircraft, Patriot missile batteries, fuel depots, radar systems, and troop concentrations — capabilities once limited to classified national intelligence agencies
  • DIA officials assess that the IRGC is actively using these datasets to refine missile and drone strike planning, compressing what previously required days of intelligence analysis to minutes; one intelligence official characterized the activity as a Chinese company “we believe maliciously, providing intelligence on an open-source platform”
  • MizarVision posted at least six detailed analyses of Saudi Arabia’s Prince Sultan Air Base between February 24 and 27, identifying Patriot positions and aircraft locations; the base was struck less than 48 hours later, and one US service member later died from injuries sustained in the attack

The latest AI news China Iran artificial intelligence military US bases geopolitics threat took concrete form on April 5 when ABC News first reported that the US Defense Intelligence Agency had assessed Iran’s IRGC as actively exploiting satellite imagery datasets from MizarVision — a Chinese geospatial AI firm with approximately 5.5% Chinese government ownership — to improve the precision and tempo of missile and drone strikes against US and allied forces.

MizarVision’s platform integrates machine learning trained on military signatures, automatically classifying aircraft types, radar arrays, hardened shelters, fuel depots, command centers, and naval vessels based on shape, thermal patterns, and contextual indicators. The AI adds geospatial metadata tags that can be directly integrated into targeting software and command-and-control systems. Its stated mission is to “democratize and universalize geospatial intelligence” — a goal that US defense officials now say Iran has operationalized for warfare.

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Traditional targeting intelligence collection, processing, analysis, and dissemination cycles take days. MizarVision’s AI reduces that to minutes by automatically generating tagged, geolocated target packages from commercially available satellite imagery. For Iran’s IRGC — which lacks the classified satellite constellation and imagery analysis units of a major power — this represents asymmetric capability: outsourcing targeting intelligence from a commercially accessible platform while maintaining operational plausibility.

DIA officials told ABC News that Iran is using these datasets not just to identify targets but to conduct pattern-of-life analysis, tracking deployment routines and periods of maximum vulnerability. That allows the IRGC to shift from broad saturation attacks toward selective strikes against air defense radars, maintenance shelters, and fuel storage facilities — the specific nodes that reduce US air combat effectiveness.

The Prince Sultan Air Base Sequence

The most alarming evidence centers on Prince Sultan Air Base in Saudi Arabia. MizarVision published detailed posts identifying Patriot missile battery positions on February 24, and aircraft parking locations on February 27. On March 1, satellite imagery showed smoke rising from damaged sections of the base following an Iranian strike. US intelligence later confirmed one service member was seriously wounded and subsequently died.

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The Geopolitical Dimension

MizarVision has also published imagery of Diego Garcia, Israeli positions, Australian naval movements, and TSMC’s semiconductor plant construction, extending the concern from conflict intelligence to strategic industrial surveillance. China officially maintains a neutral position on the Iran war. The firm operates within a Chinese government framework that analysts describe as providing Beijing “plausible deniability” — the ability to assist regional partners while avoiding direct military involvement.

As crypto.news reported, Iran has already struck tech and energy infrastructure across the Gulf as part of its asymmetric response strategy. As crypto.news noted, each confirmed escalation in the conflict has produced immediate crypto market sell-offs, with the AI targeting dimension now adding a new layer of unpredictability to any de-escalation timeline.

“Future wars will be shaped as much by who can interpret and weaponize data fastest as by who fields the most advanced missiles, aircraft, or air defense systems,” one GDC analyst assessed — a conclusion the MizarVision case has now made difficult to dispute.

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Bitcoin Hovers Around $69,000 as Trump’s Iran Deadline Looms

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Spot Bitcoin ETFs recorded their strongest daily inflows since February on Monday despite ongoing geopolitical tensions.

Crypto markets retreated on Tuesday as President Donald Trump’s self-imposed deadline for Iran to reopen the Strait of Hormuz drew closer, dampening risk appetite across global markets.

Bitcoin is trading at $69,200, according to CoinGecko, recovering from an intraday dip below $68,000 but still well off Monday’s brief push above $70,000. Ethereum is changing hands at $2,112, while Solana trades at $82. XRP fell 1.6% to $1.32.

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The total cryptocurrency market capitalization stands at approximately $2.45 trillion, down less than 1% in the past 24 hours.

Among the top 100 tokens by market cap, Rain (RAIN) led gainers with a 9.8% rise, followed by Zcash (ZEC), up 8% to $276. On the downside, Algorand (ALGO) dropped 7%, and Avalanche (AVAX) fell 6.2% to $8.75.

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Iran Deadline Dominates Sentiment

Trump escalated his rhetoric early Tuesday, posting on Truth Social that “a whole civilization will die tonight” if Iran fails to comply with demands to reopen the critical shipping lane that handles roughly one-fifth of global oil and gas flows. Vice President J.D. Vance said the military objectives of the war in Iran have been achieved, but the administration’s ceasefire demands remain unmet.

U.S. equities ended the day mostly unchanged, while West Texas Intermediate crude held above $110 per barrel as fears of continued supply disruption weighed on energy markets.

Traders widely expect the Federal Reserve to hold rates steady at its April meeting, reflecting the view that wartime inflation will keep the central bank sidelined.

ETF Inflows Defy Risk-Off Mood

Despite the geopolitical turmoil, spot Bitcoin ETFs posted $471 million in net inflows on Monday, the largest single-day intake since Feb. 25, according to SoSoValue.

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The figure sits well below January’s peak flow regime, when multiple trading days topped $700 million, but marks a notable acceleration after BTC and ETH ETFs reversed a multi-week outflow streak in late February. March saw $1.32 billion in total net inflows, coinciding with Bitcoin’s first green monthly candle in six months.

Liquidations and Derivatives

Bitcoin alone accounted for roughly $92 million in liquidations over the past 24 hours, according to CoinGlass. Liquidations were almost equally shared between long and short positions amid choppy trading.

The Crypto Fear & Greed Index sits at 11, deep in extreme-fear territory and near the lowest sustained readings since the Terra collapse in mid-2022.

Looking Ahead

The immediate catalyst for market direction is the 8 PM ET Iran deadline. Trump has repeatedly extended similar ultimatums in recent weeks, blunting their market impact, but the scale of rhetoric suggests tonight could break the pattern in either direction.

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Bitcoin has been range-bound between $62,000 and $75,000 since early February. A resolution in the Strait of Hormuz standoff would likely trigger a relief rally across risk assets.

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Cardano Whale Activity Climbs, Yet ADA Price Struggles Below $0.25

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Brian Armstrong's Bold Prediction: AI Agents Will Soon Dominate Global Financial

TLDR

  • The number of Cardano whale wallets holding over 10 million ADA has reached a four-month high.
  • Whale activity increased by 5.2% over the past nine weeks, despite ADA’s price remaining depressed.
  • ADA’s price is 11% higher than its lowest point in February, but has not shown significant upward movement.
  • Cardano’s network processed over 4 billion ADA in transactions, amounting to over $1 billion in on-chain volume.
  • Large holders accumulated 220 million ADA in March, bringing their total holdings to nearly 14 billion tokens.

The number of wallets holding over 10 million ADA tokens has reached a four-month high of 424. According to Santiment, this marks a 5.2% rise over the past nine weeks, even though Cardano’s price remains subdued. Despite the increased whale activity, ADA continues to trade below its previous highs.

Cardano Whale Activity Shows Strong Accumulation

Recent data from Santiment reveals that ADA’s price is 11% higher than its February 5 low this year. However, the rise in whale activity has not led to an immediate price surge. Santiment suggests that if the accumulation persists while the price remains low, it could eventually lead to a bullish divergence.

Analytics platform TapTools reported a 4 billion ADA transaction volume over the last five days, equating to over $1 billion. This shows that the increased activity among whales is paralleled by rising network usage. Despite this, the price of ADA has not yet reacted positively, remaining stuck below key resistance levels.

ADA’s Struggles Continue Amid Increased Whale Holdings

Whale interest in Cardano has been noticeable for weeks, with analysts like Ali Martinez highlighting that large holders accumulated 220 million ADA in late March. These whales now hold nearly 14 billion ADA, making up around 37% of the total supply. However, ADA’s price continues to remain stagnant, trading at $0.24, a 42% decline in the past three months.

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Even with the accumulation trend, ADA’s price remains 92% lower than its all-time high of over $3. Cardano’s recent performance in terms of trading volume also lags behind competitors like Solana and XRP, which processed $2.6 billion and $1.5 billion in transactions, respectively, over the same period. This shows that while whale activity is increasing, ADA’s broader market performance remains underwhelming.

Bearish Trend Persists Despite Growing Whale Interest

Despite the uptick in whale holdings, ADA continues to trade below its 50, 100, and 200-day exponential moving averages. This keeps the broader trend bearish, regardless of the accumulation. On Twitter, user gnarleyquinn raised concerns, suggesting that Cardano’s market dominance, which has dropped from 4.5% in 2021 to around 0.3% today, may lead to a decline in the coming years.

The ongoing price struggles show that Cardano has not decoupled from the broader altcoin market. While whales continue to accumulate, ADA’s future price movements remain uncertain. It remains to be seen whether the increasing accumulation will ultimately lead to a change in price dynamics for Cardano.

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Americans Lost $11B to Crypto Scams in 2025, Says FBI

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FBI, Fraud, United States, Crimes, Scams

According to the bureau, a large number of minors aged 17 and younger were included in complaints related to crypto or crypto ATMs, resulting in more than $5 million in losses.

The US Federal Bureau of Investigation (FBI) reported that Americans’ losses from crypto-related scams increased to more than $11 million in 2025.

In its annual internet crime complaint report released on Monday, the FBI said that cryptocurrency and AI-related scams were “among the costliest” for Americans in 2025, with 181,565 complaints totaling more than $11 billion. According to the bureau, it received more than one million complaints in 2025 reporting losses of about $21 million due to cyber-enabled crimes.

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FBI, Fraud, United States, Crimes, Scams
Crypto complaints and financial losses have risen sharply in recent years. Source: FBI

The FBI’s Internet Crime Complaint Center reported that investment scams resulted in the highest percentage of victims reporting losses in crypto as opposed to cash, debit cards, gift cards and other media of exchange. In addition, about 10% of the 13,168 complaints involving cybercrimes targeting minors aged 17 and younger were related to crypto or crypto ATMs, resulting in more than $5 million in losses.

The complaints the FBI received were despite the bureau’s efforts to “identify and notify people who are currently falling victim to cryptocurrency investment fraud” through its Operation Level Up in 2024. Globally, blockchain analytics platform Chainalysis reported in March that illicit addresses received $154 billion in 2025, driven in part by sanctions evasions.

Related: Cambodian lawmakers propose severe prison time for crypto scammers

Scammers use Tron blockchain token to con users using FBI

According to the FBI report, there were 32,424 complaints involved in impersonation of government officials, resulting in about $800 million in losses. However, the report did not mention bureau officials issuing a March notice warning Americans that a token on the Tron blockchain was impersonating the FBI with the goal of obtaining personal information.

Tron users reported receiving a token with the FBI logo claiming that their wallet was “under investigation.” The users were then prompted to enter personal information under the guise of an FBI anti-money-laundering verification to avoid their accounts being frozen.

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Magazine: Are DeFi devs liable for the illegal activity of others on their platforms?