Roman Storm Guilty of Unlicensed Money Transmitting Conspiracy in Partial Verdict

Roman Storm, co-founder of the Tornado Cash privacy tool, was convicted by a federal jury in Manhattan on August 6, 2025, on a charge of conspiracy to operate an unlicensed money transmitting business. The conviction came after a partial mistrial, as the jury deadlocked on more serious charges, including money laundering and sanctions violations. The guilty verdict carries a potential maximum sentence of five years in prison [1].

Storm was arrested in 2023 and faced accusations of enabling over $1 billion in illicit transactions via Tornado Cash, a decentralized tool designed to obscure the trail of cryptocurrency transfers. Prosecutors argued that Storm was aware of the platform’s misuse by the Lazarus Group, a North Korean hacking collective, and benefited financially from the service. His legal team, however, maintained that Storm had no intention of enabling criminal activity and was shocked to learn of the platform’s exploitation. They also denied that he controlled how users interacted with the software [2].

The conviction marks a pivotal moment in the legal landscape for privacy-focused crypto tools. It is the first time a U.S. court has pursued criminal charges against a developer of an open-source protocol rather than a centralized entity. Prior regulatory actions, such as the 2022 sanctions imposed by the U.S. Treasury’s Office of Foreign Assets Control (OFAC) on Tornado Cash addresses, had focused on specific transactions rather than developers themselves. This case introduces new legal uncertainties, as it implies that creators of decentralized tools may be held liable for how their software is used by third parties [3].

The outcome has generated mixed reactions within the crypto and DeFi sectors. Advocacy groups and developers have raised concerns that the ruling could stifle innovation by imposing traditional financial regulations on noncustodial tools. Vitalik Buterin, co-founder of Ethereum, publicly defended Storm, noting that the Tornado Cash project was partly inspired by his own advocacy for privacy in the Ethereum ecosystem [4].

This case also follows a similar guilty plea from co-founders of the Samourai Wallet, another privacy-centric tool. The trend suggests a broader regulatory strategy by the U.S. Department of Justice to hold developers accountable for the misuse of their platforms, regardless of their direct involvement in illegal activities. This shift has raised concerns about the future of decentralized technologies and the potential chilling effect on open-source development [5].

The sentencing for Roman Storm is expected to be announced in the coming months. The case is likely to have lasting implications for the regulatory treatment of decentralized technologies and the rights of developers in the crypto space [6].

Source:

[1] Tornado Cash co-founder Roman Storm found guilty on money ... (https://www.coindesk.com/policy/2025/08/06/roman-storm-guilty-of-unlicensed-money-transmitting-conspiracy-in-partial-verdict)

[2] Tornado Cash creator Roman Storm found guilty on money ... (https://www.theblock.co/post/364948/tornado-cash-creator-roman-storm-found-guilty-on-money-transmitting-charge-but-not-guilty-on-sanctions-charge-inner-city-press)

[3] Tornado Cash developer found guilty on 1 count in partial ... (https://blockworks.co/news/roman-storm-guilty-one-count)

[4] Tornado Cash's Roman Storm Case Ends in Partial Mistrial (https://www.businessinsider.com/tornado-cash-roman-storm-trial-partial-mistrial-2025-8)

[5] Tornado Cash's Roman Storm Found Guilty on One ... (https://www.bankless.com/read/tornado-cashs-roman-storm-found-guilty-on-one-charge-in-partial-verdict)

[6] BREAKING: Roman Storm jurors reach split verdict after three ... (https://www.dlnews.com/articles/defi/storm-jurors-reach-split-verdict-in-criminal-trial/)