Bitcoin News Today: Roman Storm Guilty of Unlicensed Crypto Business Charge Jury Deadlocks on Laundering Counts

Roman Storm, co-founder of Tornado Cash, was found guilty of one of three charges in a high-profile U.S. federal trial held in Manhattan. The jury delivered a partial verdict, convicting him of conspiracy to operate an unlicensed money transmitting business. However, it deadlocked on the remaining two counts, including allegations of facilitating the laundering of stolen cryptocurrency and conspiring to violate economic sanctions [1][2][3]. The case centered on Storm’s role in creating and maintaining Tornado Cash, a decentralized cryptocurrency mixer accused of enabling financial crimes by obfuscating transaction trails [4].

The trial, which lasted nearly three weeks, saw prosecutors argue that Tornado Cash was used to launder over $1 billion in illicit funds, including proceeds from high-profile cyberattacks and ransomware schemes. U.S. regulators had previously blacklisted the tool in 2022, citing its misuse in facilitating criminal activity [5]. Defense attorneys, meanwhile, maintained that Storm’s contribution was limited to developing open-source software and that users, not developers, bore responsibility for how the tool was applied [6].

Jury deliberations spanned multiple rounds, with the panel initially unable to reach a unanimous decision on all charges. On August 4, 2025, Judge Katherine Polk Failla ordered the jury to continue deliberations after a four-day deadlock, emphasizing the need to resolve the remaining questions [7]. Eventually, the jury managed to return a verdict on the unlicensed business charge but could not agree on the more serious counts of money laundering and sanctions violations.

The partial conviction marks a pivotal moment in the ongoing legal and regulatory scrutiny of decentralized finance (DeFi) tools. While the outcome is a win for U.S. authorities seeking to hold developers accountable for their roles in financial crime ecosystems, it also underscores the challenges of prosecuting open-source software in a decentralized environment [8]. The case sets a precedent for how courts may differentiate between intent and use in the context of blockchain-based services.

Roman Storm is expected to face sentencing in the coming months. A conviction on the unlicensed business charge could result in fines or imprisonment, though the absence of a guilty verdict on the more severe counts may influence the severity of the sentence. The outcome also raises broader questions about the boundaries of liability in the crypto space, particularly for developers whose tools are later exploited for illicit purposes [9].

The legal battle over Tornado Cash reflects a wider struggle to regulate decentralized technologies under existing legal frameworks. As courts grapple with the implications of this case, the verdict may shape future prosecutions and influence the development of policy around DeFi and crypto compliance [10].

Source:

[1] Cointelegraph, Tornado Cash Roman Storm Found Guilty Partial Verdict (https://cointelegraph.com/news/tornado-cash-roman-storm-found-guilty-partial-verdict)

[2] Yahoo, US Jury Deadlocks on Tornado Cash Founder's Money (https://ca.news.yahoo.com/us-jury-deadlocks-tornado-cash-171253018.html)

[3] MSN, Jury Deadlocks on Money Laundering Charge Against Founder of Crypto Mixer Tornado Cash (https://www.msn.com/en-us/money/news/jury-deadlocks-on-money-laundering-charge-against-founder-of-crypto-mixer-tornado-cash/ar-AA1K22YA?ocid=finance-verthp-feeds)

[4] Bitcoin.com, Tornado Cash Founder Guilty of Unlicensed Business Operation (https://news.bitcoin.com/tornado-cash-founder-guilty-of-unlicensed-business-operation/)

[5] Law360, Breaking: Tornado Cash Founder Guilty on Money Transmitting Charge (https://www.law360.com/articles/2371881/breaking-tornado-cash-founder-guilty-on-money-transmitting-charge)

[6] CoinDesk, Roman Storm Jury Deadlocked, Judge Tells Them to Keep Deliberating (https://www.coindesk.com/policy/2025/08/06/roman-storm-jury-deadlocked-judge-tells-them-to-keep-deliberating)

[7] AInvest, Judge Orders Roman Storm Jury to Resume Deliberations Deadlock (https://www.ainvest.com/news/judge-orders-roman-storm-jury-resume-deliberations-deadlock-2508/)