Roman Storm Convicted of Unlicensed Money Transmitting Conspiracy in Crypto Trial

Roman Storm, co-founder of the Ethereum-based crypto mixer Tornado Cash, has been found guilty of conspiring to operate an unlicensed money transmitting business following a high-profile federal trial in Manhattan. The jury reached a split verdict after a three-week trial and four days of deliberation, convicting him on one count while acquitting him on charges related to money laundering and violating international sanctions [1].

Storm’s legal team has vowed to continue the fight until he is “fully vindicated,” a phrase repeatedly used by his attorneys and the developer himself. Brian Klein, his lead lawyer, expressed relief over the acquittals but emphasized the “serious legal issues” with the remaining charge [2]. Alex Urbelis, general counsel for the Ethereum Name Service, noted that the jury may not have fully grasped the distinction between custodial and non-custodial systems—arguably the most critical legal point in the case [3].

Despite the guilty verdict, prosecutors attempted to have Storm, who is currently out on bail, remanded to prison ahead of sentencing. They cited his Russian nationality, his alleged immigration-related advice, and his financial resources as risks of flight. Storm’s defense countered by stating that he had surrendered his passport and has strong family ties in the U.S., ultimately persuading the judge to keep him on bail [4].

Storm himself has remained defiant, calling the conviction a “big win” and vowing to “fight it all the way,” mirroring the rhetoric of his legal team. In an interview outside the courthouse, he described the charge as “bullshit” and echoed his commitment to challenging the verdict [5].

The case has sparked broader legal and industry debates over the regulation of decentralized financial tools. Tornado Cash, a privacy-focused mixer, was developed in 2019 and has since been used by both legitimate and malicious actors. Critics argue that the trial could create a chilling effect on innovation in the crypto space, while supporters of the prosecution view it as a necessary measure to combat financial crime in the digital economy [6].

Storm’s legal team continues to stress that the conviction stems from a flawed interpretation of financial regulations in the context of open-source, non-custodial software. They have indicated that the appeal process will likely be lengthy and complex, with the possibility of setting a precedent that could impact future cases involving decentralized technology [7].

As the case moves toward sentencing, Storm’s team has made it clear that they view the current conviction as only the beginning of a much larger legal battle. “We will not stop fighting for Roman,” they have stated, framing the outcome as a partial loss but not a final one [8].

[1] title1: Tornado Cash Developer Roman Storm Guilty on One Count in Federal Crypto Case (https://www.wired.com/story/tornado-cash-developer-roman-storm-guilty-on-one-count-in-federal-crypto-case/)

[2] title2: Roman Storm Guilty of Unlicensed Money Transmitting Conspiracy in Partial Verdict (https://www.coindesk.com/policy/2025/08/06/roman-storm-guilty-of-unlicensed-money-transmitting-conspiracy-in-partial-verdict)

[3] title3: Tornado Cash Co-Founder Found Guilty But Avoids Worst (https://www.bloomberg.com/news/articles/2025-08-06/tornado-cash-co-founder-storm-guilty-in-crypto-laundering-case)

[4] title4: BREAKING: Tornado Cash dev Storm guilty of money transmitting (https://www.dlnews.com/articles/defi/storm-jurors-reach-split-verdict-in-criminal-trial/)

[5] title5: Tornado Cash cofounder convicted in partial verdict in US (https://www.mlex.com/mlex/financial-crime/articles/2374197/tornado-cash-cofounder-convicted-in-partial-verdict-in-us-cryptocurrency-trial)

[6] title6: Tornado Cash Developer Roman Storm To Fight Guilty Charge (https://insidebitcoins.com/news/roman-storm-and-legal-team-will-fight-until-he-is-fully-vindicated-after-guilty-charge)

[7] title7: Roman Storm And Legal Team Will Fight Guilty Charge Until He Is “Fully Vindicated” (https://coinmarketcap.com/community/articles/689453959ff08f0ef3199905/)