This prosecutorial stance coincides with the U.S. Treasury's decision to formally withdraw the 2020 unhosted wallet rule and a 2023 proposal on mixers. The Financial Crimes Enforcement Network (FinCEN) had sought to mandate identity checks for transfers above $10,000 and recordkeeping for those above $3,000. Treasury dropped the rules, acknowledging that lawful users may utilize mixers for privacy and that the 2023 proposal could have a chilling effect on legitimate activity.
Tuesday, October 20, 2026
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DOJ Links All Crypto Mixer Deposits to Criminal Conspiracy
Crypto14 days ago
The Southern District of New York is opposing a bid by Tornado Cash co-founder Roman Storm to move his criminal trial to a different venue. Federal prosecutors are utilizing a new Second Circuit legal precedent from the Sterlingov case to argue that any deposit made into a cryptocurrency mixer facilitates a criminal conspiracy by increasing the pool of funds that obscures identities. This argument asserts that even legitimate transactions become illegitimate if they assist in money laundering or sanctions evasion.
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