Jury Deadlocked in Tornado Cash Developer Trial Over Sanctions and Laundering Charges

The jury in the New York trial of Roman Storm, a developer of the Tornado Cash protocol, has been deadlocked for four days, unable to reach a unanimous verdict on all three charges against him [1]. The charges include conspiracy to commit money laundering, conspiracy to operate an unlicensed money transmitting business, and conspiracy to violate international sanctions [1]. On Wednesday, the panel informed the court of their inability to agree on at least one count. In response, Judge Katherine Polk Failla instructed them to continue deliberating, emphasizing that the law does not require a unanimous agreement but encouraging them to do so if possible [1].

Storm faces a potential maximum sentence of 45 years in prison if convicted on all counts [1]. Prosecutors have argued that Tornado Cash, a decentralized protocol that obscures transaction trails on the Ethereum blockchain, was used by hackers—including members of North Korea’s state-affiliated cyber group Lazarus—to launder over $1 billion in illicit funds [1]. The defense, meanwhile, contends that the protocol functions autonomously and that individual users, not developers, bear responsibility for how it is deployed [1].

The case has raised complex legal questions, particularly regarding the liability of developers for the actions of users in decentralized systems [1]. The jury’s deliberations have included inquiries into the legal obligations of developers in responding to foreign law enforcement requests and whether intermediary wallets were included in the U.S. Treasury’s sanctions list [1]. Additionally, the panel has questioned the justification for the venue of the trial in the Southern District of New York, prompting the court to provide transcripts of FBI testimony related to the case [1].

The proceedings reflect a broader debate within the cryptocurrency community about the balance between privacy, innovation, and regulatory compliance [1]. Critics of the prosecution argue that the case could discourage developers from building privacy-enhancing tools and hinder the growth of the decentralized finance (DeFi) sector [1]. Others view it as a necessary effort to prevent the exploitation of blockchain technology for criminal purposes [1].

With the jury continuing to deliberate, the case remains in a critical phase. The outcome could set a legal precedent for the treatment of open-source, decentralized technologies under U.S. law [1]. As the trial unfolds, it continues to draw attention from legal experts, policymakers, and the crypto industry, with potential long-term implications for the regulation of blockchain-based tools [1].

Sources:

[1] Tornado Cash (https://www.coindesk.com/tag/tornado-cash)