Manhattan Jury Condemns Tornado Cash Co-Founder on One Charge, Deadlocks on Others

A Manhattan jury on July 24, 2025, reached a split decision in the high-profile trial of Roman Storm, co-founder of the decentralized cryptocurrency mixer Tornado Cash. Storm was found guilty of conspiracy to operate an unlicensed money transmitting business, but the jury could not reach a unanimous verdict on the more serious charges of money laundering and sanctions violations, leading to a mistrial on those counts [1]. The partial verdict marks the first conviction in a series of legal actions targeting developers of privacy-focused crypto tools.

The trial centered around allegations that Tornado Cash, a protocol designed to obscure the flow of cryptocurrency transactions, was exploited by malicious actors, including North Korea’s Lazarus Group, to launder over $1 billion in illicit funds [2]. Prosecutors argued that Storm had knowledge of these activities and profited from the tool’s widespread use. They emphasized that the case was not about the code itself, but about Storm’s intent and awareness of the real-world consequences of its deployment [3].

Storm’s defense team maintained that he was not responsible for how others chose to use the open-source code and that he was unaware of the scale of illicit activity being facilitated through Tornado Cash. They highlighted internal communications where Storm and other developers expressed shock upon learning of the tool’s misuse [4]. The jury’s inability to agree on the more severe charges suggests the legal system is still grappling with how to apply traditional financial regulations to decentralized, open-source software.

The outcome has significant implications for the future of crypto development, particularly for non-custodial and privacy-enhancing tools. Prominent figures in the cryptocurrency industry, including Ethereum co-founder Vitalik Buterin and the DeFi Education Fund, have spoken out in support of Storm, arguing that holding developers accountable for the misuse of their tools could stifle innovation and chill open-source development [5]. The DeFi Education Fund stressed that developers do not control user behavior and should not be considered money transmitters under the Bank Secrecy Act [6].

This case follows a growing trend of legal and regulatory scrutiny against crypto privacy tools. In recent months, another Tornado Cash developer was convicted in the Netherlands, and the founders of the Samourai Wallet mixer have pleaded guilty to similar charges [7]. As enforcement agencies continue to target tools that enable financial anonymity, the legal landscape for crypto innovation remains uncertain.

With the jury deadlocked on the more serious charges, the case could be retried, and Storm’s legal team has indicated they will challenge the guilty verdict on the lesser charge. The broader debate over developer liability and the regulatory treatment of decentralized software is expected to remain a focal point in the crypto industry and courts alike [8].

Sources:

[1] Tornado Cash Co-Founder Is Found Guilty After 3-Week Trial (Cointelegraph, https://cointelegraph.com/news/tornado-cash-roman-storm-found-guilty-partial-verdict)

[2] Developer of Crypto Mixer Tornado Cash Found Guilty on ... (The, https://www.wsj.com/finance/currencies/developer-of-crypto-mixer-tornado-cash-found-guilty-on-one-criminal-charge-a1c32405)

[3] Tornado Cash Co-Founder Roman Storm Found Guilty on ... (CoinCentral, https://coincentral.com/tornado-cash-co-founder-roman-storm-found-guilty-on-money-transmitting-charge)

[4] Tornado Cash Co-Founder Found Guilty of Writing Code (The, https://thedefiant.io/tornado-cash-co-founder-found-guilty-of-writing-code)

[5] Tornado Cash Founder Found Guilty in Crypto Laundering ... (99Bitcoins, https://99bitcoins.com/news/altcoins/tornado-cash-founder-found-guilty-in-crypto-laundering-case/)

[6] Tornado Cash Developer Roman Storm Guilty on One ... (WIRED, https://www.wired.com/story/tornado-cash-developer-roman-storm-guilty-on-one-count-in-federal-crypto-case)

[7] Jury Deadlocks on Money Laundering Charge Against ... (U.S., https://www.usnews.com/news/us/articles/2025-08-06/jury-deadlocks-on-money-laundering-charge-against-founder-of-crypto-mixer-tornado-cash)

[8] Tornado Cash Co-Founder Found Guilty on One Charge, Jury Deadlocks on Others (AInvest, https://www.ainvest.com/news/manhattan-jury-concludes-mixed-verdict-tornado-cash-founder-trial-2508/)