Roman Storm Found Guilty of Unlicensed Money Transmitting Conspiracy in Partial Verdict

Roman Storm, a central developer of the decentralized cryptocurrency mixer Tornado Cash, was found guilty on one count of conspiracy to operate an unlicensed money transmitting business following a three-week trial. The jury, however, failed to reach a unanimous decision on the two remaining charges: conspiracy to commit money laundering and conspiracy to violate the International Emergency Economic Powers Act (IEEPA). The partial verdict, announced on July 17 after four days of deliberation, ends the first phase of the case without a full resolution [1].

Storm, who did not testify during the trial, was charged alongside co-developer Roman Semenov in 2023 with three federal offenses. Semenov remains at large and is currently a fugitive wanted by the FBI. Prosecutors argued throughout the case that Storm’s actions were motivated by profit and that Tornado Cash enabled illicit actors, including ransomware hackers and state-sponsored entities, to conceal the origins of their funds [2]. In contrast, the defense emphasized that Tornado Cash was an open-source privacy tool designed to protect users from exposing their financial data, and that Storm had no direct criminal intent or knowledge of specific illegal activities [3].

The prosecution’s closing arguments underscored the role Tornado Cash played in obfuscating the flow of illicit funds, with one attorney stating that the platform “made dirty money clean money, and made it impossible to tell the difference” [4]. The defense countered by highlighting the broader use of Tornado Cash for legitimate privacy purposes and the lack of centralized control or oversight by Storm himself. Despite the government’s attempt to have Storm held in custody due to his ties to Russia and financial resources, the court granted bail, ruling that he posed no flight risk [5].

The outcome reflects the ongoing legal ambiguity surrounding decentralized technologies and the extent to which developers can be held liable for the misuse of their tools. While the guilty verdict on the unlicensed money transmitting charge sets a precedent, the inability of the jury to agree on the more serious allegations suggests that the legal community remains divided on how to apply traditional financial regulations to decentralized platforms [6]. This trial is also indicative of the broader challenges faced by U.S. regulators in enforcing compliance in a global, decentralized, and often anonymous digital financial ecosystem [7].

With the jury deadlocked on two counts, the government may choose to retry Storm on those charges. In the meantime, the court has scheduled sentencing for the one count of conviction, though the final disposition will depend on legal arguments regarding mitigating factors. The case continues to attract attention from both legal scholars and the cryptocurrency industry, as it may influence future prosecutions of developers linked to tools with dual-use capabilities [8].

Source:

[1] Blockworks - https://blockworks.co/news/roman-storm-guilty-one-count

[2] Business Insider - https://www.businessinsider.com/tornado-cash-roman-storm-trial-partial-mistrial-2025-8

[3] Crypto Economy - https://crypto-economy.com/tornado-cash-developer-trial-stalls-as-jury-struggles-to-reach-verdict/

[5] Decrypt - https://decrypt.co/333790/jury-tornado-cash-developer-storm-guilty-money-transmitting

[6] Law360 - https://www.law360.com/whitecollar

[7] Coindesk - https://www.coindesk.com/policy/2025/08/06/roman-storm-guilty-of-unlicensed-money-transmitting-conspiracy-in-partial-verdict

[8] CoinDesk - https://www.coindesk.com/policy/2025/08/06/roman-storm-jury-deadlocked-judge-tells-them-to-keep-deliberating