Ethereum News Today: Jury Condemns Roman Storm for Unlicensed Money Transmission in Tornado Cash Case

The jury’s journey to the Roman Storm verdict unfolded over the course of a week of intense deliberation, culminating in a partial conviction while leaving two key charges unresolved. A 12-person jury, including a member who turned 90 during the process, deadlocked on money laundering and sanctions violations, but reached a unanimous decision to convict Roman Storm on one count: conspiracy to operate an unlicensed money-transmitting business under U.S. federal law [1]. The sentencing for this single felony charge had not yet been scheduled as of early August 2025, and it remains unclear whether the U.S. government plans to retry Storm on the remaining allegations [1].

Throughout the deliberations, the jury submitted multiple requests for clarification, including transcripts of witness testimony, an explanation of the indictment’s foundation, and specific information about North Korean wallets linked to sanctions. These queries reflected the jury’s struggle to reconcile the legal definitions of conspiracy and intent with the nature of a decentralized, open-source platform like Tornado Cash [1]. The foreperson noted the challenge of achieving consensus, stating that some jurors were “set in stone” despite efforts to reconcile differing viewpoints [1].

The case against Storm centered on allegations that Tornado Cash, the Ethereum-based crypto mixer, was used to launder over $1 billion in illicit funds. The U.S. Department of Justice argued that Storm was aware of the tool’s misuse and should be held criminally responsible for its role in facilitating such activity. Storm has consistently denied the charges, maintaining that open-source code should not be liable for third-party misuse [1]. His legal team emphasized that the intent behind developing Tornado Cash was to promote financial privacy, not to enable illicit activity [1].

Storm, born in Russia, moved to the U.S. in 2008 and transitioned to software engineering. He worked at major tech firms before co-creating Tornado Cash in 2019. The tool became a widely used privacy mechanism in the Ethereum ecosystem but soon drew regulatory attention due to its potential for misuse [1]. His legal defense has framed the case as a broader challenge to the regulatory treatment of open-source software in the context of decentralized technologies [1].

The outcome has already had market repercussions. Following the guilty verdict on August 7, 2025, the price of TORN, the native token of Tornado Cash, dropped by 17% on August 8 [2]. The Ethereum Foundation pledged $1 million to support Storm’s defense on August 1, 2025, reflecting concern within the broader crypto community about the implications of the ruling [3]. Legal experts suggest that the unresolved charges could lead to a retrial, potentially adding up to 40 years to Storm’s sentence if upheld [1].

The case represents a pivotal moment in the legal treatment of decentralized technologies. The difficulty the jury faced in reaching a full verdict highlights the challenges of applying traditional legal standards to digital privacy tools. Storm’s conviction sets a precedent that may influence future cases involving open-source software and financial regulation in the crypto space [1].

Source:

[1] Roman Storm’s Tornado Cash Verdict Raises Questions About Future of Digital Privacy and Open-Source Development August 7, 2025

(https://www.ainvest.com/news/roman-storm-guilty-tornado-cash-case-unlicensed-money-transmission-charges-2508/)

[2] Roman Storm Guilty Verdict Sees TORN Price Drop 17%

(https://www.bitget.com/news/detail/12560604901469)

[3] ETH Foundation Pledges $1M for Tornado Cash's Roman Storm Post-Guilty Verdict

(https://www.mexc.com/news/eth-foundation-pledges-1m-for-tornado-cashs-roman-storm-post-guilty-verdict/64261)