Roman Storm Found Guilty of Unlicensed Crypto Business in U.S. Trial

Roman Storm, co-founder of the Ethereum-based privacy tool Tornado Cash, was found guilty of conspiracy to operate an unlicensed money transmitting business in a U.S. federal court on August 6, 2025. However, the jury deadlocked on more serious charges of money laundering and sanctions violations, prompting the judge to order further deliberations. After four days of discussions, the jury was unable to reach a unanimous decision on those counts [1]. This partial conviction marks a significant moment in the ongoing legal challenges surrounding blockchain-based privacy tools and their regulation.

Tornado Cash, a decentralized Ethereum service, allows users to obscure the origins of their crypto transactions by mixing funds with those of other users. The U.S. government accused Storm of facilitating financial crime by enabling money laundering through the tool. Prosecutors had sought a conviction on all three charges: conspiracy to commit money laundering, violations of sanctions, and conspiracy to operate an unlicensed money transmitting business. The jury’s inability to reach a consensus on the first two charges underscores the legal complexities in applying traditional financial crime laws to decentralized, open-source software [2].

The guilty verdict on the lesser charge carries significant legal implications. It may set a precedent for how U.S. courts handle cases involving unlicensed cryptocurrency services, reinforcing the government’s regulatory focus on financial anonymity tools. If Storm had been found guilty on all counts, he could have faced a maximum sentence of 45 years in prison [3]. The mixed outcome, however, suggests the jury remained divided on whether Tornado Cash was directly responsible for enabling illegal activity, highlighting the difficulty in attributing intent and responsibility in the decentralized finance (DeFi) space.

The case has reignited a broader debate about the balance between privacy rights and regulatory oversight in the crypto industry. While the U.S. Treasury’s Office of Foreign Assets Control (OFAC) designated Tornado Cash as a sanctions target in 2022, critics argue that criminalizing the development of privacy-preserving software could stifle innovation in open-source blockchain projects. The legal proceedings also underscore the growing regulatory risks for developers of privacy-focused technologies, as governments increasingly apply traditional financial laws to the decentralized world [4].

The outcome of this trial is likely to influence the future development and adoption of privacy-enhancing tools in the crypto ecosystem. It highlights the tension between technological innovation and compliance with existing regulatory frameworks, particularly in the U.S. As the legal landscape continues to evolve, developers, investors, and policymakers will need to navigate these challenges carefully, balancing the potential of decentralized finance with the need for financial accountability and transparency [5].

Sources:

[1] Theblock.co

[2] Kfgo.com

[3] Coindesk.com

[4] Cointelegraph.com

[5] Theblock.co