Roman Storm Found Guilty in Tornado Cash Case Over Unlicensed Money Transmission Charges

Roman Storm, co-founder of the Ethereum-based cryptocurrency mixer Tornado Cash, was found guilty on August 7, 2025, of operating an unlicensed money-transmitting business under U.S. federal law. The charge carries a maximum sentence of five years in prison, and a jury has yet to decide on additional charges related to money laundering and sanctions violations, which could add up to 40 years if retried [1]. Storm has maintained his innocence throughout the trial, which has drawn widespread attention for its implications on digital privacy and open-source software development.

Storm’s legal troubles began in August 2023, when he was indicted on multiple counts including operating an unlicensed money transmission service and conspiracy to violate U.S. sanctions. The Department of Justice (DOJ) claimed he was personally aware that Tornado Cash was used to launder over $1 billion in illicit funds [1]. The mixer, which allows users to obscure the origin of their cryptocurrency transactions, has been a contentious tool in the debate between privacy rights and regulatory oversight.

Born in Russia, Storm studied metallurgical engineering at South Ural State University before moving to the U.S. in 2008. Through self-taught programming, he transitioned into a software engineering career, working at companies like Cisco and Amazon before becoming a blockchain developer [1]. His work on Ethereum led to the creation of Tornado Cash in 2019, alongside two other developers. The platform became a widely used privacy tool, but also a target for regulators due to its association with illicit financial activity.

The legal outcome in Storm’s case is expected to serve as a precedent for how U.S. courts handle cases involving open-source software and digital privacy. Legal experts note that the U.S. government has the option to retry Storm on the unresolved charges, which could significantly increase his potential sentencing [1]. This decision will likely shape the future of cryptocurrency development, particularly for tools designed to protect user anonymity.

Storm has argued that his code was intended to promote financial privacy and that he should not be held criminally liable for how others use open-source software. In a statement on social media, he described himself as a “proud United States citizen” who has been “targeted by Biden’s administration and SDNY for writing open source code” [1]. His case highlights the tension between innovation and regulation in the rapidly evolving crypto space.

The ruling also raises broader questions about how to define and regulate open-source projects in a legal framework that has yet to fully adapt to decentralized technologies. Storm’s journey from Russia to Silicon Valley, and ultimately to the courtroom, underscores the complexities of navigating the intersection between technology, privacy, and the law.

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/)