Ethereum News Today: Tornado Cash Founder Guilty of Unlicensed Money Transmission, Jury Deadlocks on Other Charges

A 12-member jury in the United States federal court reached a partial verdict in the case of Roman Storm, co-founder of the Tornado Cash cryptocurrency mixer, on August 7, 2025. The jury convicted Storm on one count of operating an unlicensed money transmitting business, but could not reach a consensus on additional charges of money laundering and sanctions evasion [1]. The case, which involved complex legal interpretations of digital privacy, open-source software, and the responsibilities of developers, has sparked widespread debate within the crypto industry and legal community [1].

The jury, which included a member who celebrated her 90th birthday during deliberations, submitted multiple requests for clarification during the week-long deliberation period. These included transcripts of key witness testimonies, a detailed breakdown of the indictment, and a specific inquiry about the wallets included in North Korean sanctions [1]. Despite these requests, the jury foreperson noted on August 6 that the group had made “a good faith effort to consider all arguments,” but remained deadlocked due to differences in interpreting the legal standard for conspiracy to commit money laundering [1].

According to the jury charge, jurors were required to agree beyond a reasonable doubt that Storm had knowingly participated in an agreement to commit money laundering. The charge emphasized that criminal conspiracies are often conducted through unspoken agreements and not through written records [1]. The legal complexities and ambiguity of digital transactions appear to have contributed to the division among jurors. The judge has not yet scheduled a sentencing hearing, and it remains unclear whether the U.S. government will pursue retrials on the unresolved charges [1].

Storm, who moved to the U.S. in 2008, has consistently maintained his innocence, arguing that Tornado Cash was a decentralized, open-source tool intended to protect digital privacy and was not designed to facilitate illegal activities. His legal team has emphasized that the software was non-custodial and lacked any centralized control or financial incentives for the developers [1]. The conviction, however, raises significant concerns among developers and privacy advocates, who fear it could set a dangerous legal precedent for open-source projects [1].

The verdict also had immediate market implications. Following the announcement, the price of TORN, the native token of Tornado Cash, dropped by 17%, reflecting investor anxiety over the legal risks associated with privacy-focused protocols [2]. The Ethereum Foundation and other industry actors have pledged financial support for Storm’s legal defense, signaling a broader industry concern over regulatory overreach [3]. This case is seen as a pivotal moment in the evolving legal landscape for decentralized finance and open-source software, with long-term consequences for how U.S. courts define liability in the digital economy [1].

As the legal battle continues, the Roman Storm case highlights the growing tension between innovation and regulation in the crypto space. The outcome may influence future court decisions and shape the development of legal frameworks for digital tools that challenge traditional financial paradigms [1].

Source:

[1] Roman Storm’s Tornado Cash Verdict Raises Questions About Future of Digital Privacy and Open-Source Development August 7, 2025 (https://en.coinotag.com/roman-storms-tornado-cash-verdict-raises-questions-about-future-of-digital-privacy-and-open-source-development/)

[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)