Ethereum News Today: Roman Storm Guilty on Unlicensed Money Transmission Charge Amid Deadlocked Sanctions Allegations

Roman Storm, co-founder of the Ethereum-based cryptocurrency mixer Tornado Cash, was found guilty by a federal jury in Manhattan on one felony charge: conspiracy to operate an unlicensed money transmitting business. The verdict, announced in late August 2025, came after a four-day deadlock on more serious charges related to sanctions violations and money laundering [1]. The U.S. Department of Justice (DOJ) had accused Storm of enabling illicit transactions, including those linked to the North Korean Lazarus Group. However, the jury failed to reach a consensus on these allegations, leading to their dismissal [3].

The prosecution’s case relied heavily on testimony from cybersecurity experts and government agents, who argued that Storm had the technical ability to modify Tornado Cash to prevent misuse but chose not to. Defense witnesses, including Ethereum core developer Preston Van Loon and NAXO co-founder Matthew Edman, countered that Tornado Cash was a legitimate tool for enhancing privacy in a decentralized financial system and that its misuse was not inherent to its design [2].

Storm, who has consistently maintained his innocence, was indicted in August 2023 and released on bail. His legal team has raised over $3 million in support from notable figures in the crypto space, including Ethereum co-founder Vitalik Buterin and Paradigm founder Matt Huang. Despite the partial loss, Storm’s legal representatives continue to challenge the charges, with sentencing yet to be scheduled [4].

The verdict has drawn mixed reactions from the broader crypto community. Some view it as a sign of increasing regulatory scrutiny of privacy-enhancing tools, particularly those operating outside centralized oversight. Others argue that the lack of a full conviction signals the judiciary’s struggle to apply traditional financial laws to decentralized software. The case has also reignited debates over the legal liability of open-source developers and whether they should be held responsible for the ways their tools are used [5].

The outcome reflects a broader legal uncertainty in the crypto space. While Storm faces potential imprisonment for running an unlicensed service, the jury’s inability to convict him on the more serious sanctions-related charges highlights the difficulty of prosecuting individuals for the indirect or unintended use of their technology. This tension between innovation and regulation is likely to continue shaping the legal landscape for crypto developers and service providers [6].

Source:

[1] The (https://www.wsj.com/finance/currencies/developer-of-crypto-mixer-tornado-cash-found-guilty-on-one-criminal-charge-a1c32405)

[2] The (https://thedefiant.io/tornado-cash-co-founder-found-guilty-of-writing-code)

[3] CCN.com (https://www.ccn.com/news/crypto/roman-storm-free-tornado-cash-verdict/)

[4] Reuters (https://www.reuters.com/legal/government/jury-deadlocks-money-laundering-charge-against-founder-crypto-mixer-tornado-cash-2025-08-06/)

[5] blockhead.co (https://www.blockhead.co/2025/08/07/tornado-cash-verdict-co-founder-roman-storm-found-guilty-of-one-charge/)

[6] dlnews.com (https://www.dlnews.com/articles/defi/storm-jurors-reach-split-verdict-in-criminal-trial/)