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

Roman Storm, the developer of the Ethereum-based privacy tool Tornado Cash, has been found guilty of one count of conspiracy to operate an unlicensed money transmitting business, but the jury deadlocked on two more serious charges: conspiracy to launder money and conspiracy to violate U.S. sanctions. The partial mistrial, which followed a three-and-a-half-week trial, leaves the possibility open for the U.S. Department of Justice to retry Storm on the unresolved charges [1]. The verdict reflects the complex legal terrain surrounding decentralized finance (DeFi) and the use of privacy tools in the blockchain ecosystem.

Judge Katherine Fallia issued an Allen charge—encouraging the jury to reach a unanimous decision—after four days of deliberation, but the panel remained divided [2]. Storm was initially charged in 2023 with three counts, with prosecutors arguing that Tornado Cash was used by illicit actors, including the North Korean hacking group Lazarus, to launder stolen cryptocurrency. His defense team countered that the tool was designed for legitimate users seeking privacy and not for criminal activity [3].

This case has broader implications for the DeFi sector. Legal experts warn that the outcome could influence how other decentralized protocols are treated under U.S. financial regulations. A retrial or a full conviction could set a precedent that increases legal risk for developers of privacy-focused tools, particularly those that obscure transaction trails [6]. The U.S. government had previously blacklisted Tornado Cash in 2022, claiming $7 billion had been laundered through the protocol since its launch, although those sanctions were later deemed unlawful and revoked [4].

Storm’s legal team has challenged the interpretation of key evidence, including alleged Telegram messages and on-chain data, suggesting that the government overplayed the tool’s role in facilitating crime. They also cast doubt on the credibility of a witness who claimed to have lost $250,000 in a scam involving Tornado Cash [7]. The defense’s focus on intent and the ambiguity of use highlights the challenges of applying traditional financial crime laws to decentralized software.

As of early August 2025, prosecutors have not yet announced whether they will pursue a retrial, stating they would “get back to the court” with their decision [5]. The legal uncertainty surrounding the case underscores the tension between regulatory efforts to combat financial crime and the principles of decentralization and privacy in the crypto space. Developers and privacy advocates are closely watching how the government chooses to proceed, as the outcome could shape the future of DeFi regulation and enforcement [8].

Source:

[1] title1 (https://cointelegraph.com/news/partial-verdict-next-steps-roman-storm-trial)

[2] title2 (https://www.businessinsider.com/tornado-cash-roman-storm-trial-partial-mistrial-2025-8)

[3] title3 (https://www.wired.com/story/tornado-cash-developer-roman-storm-guilty-on-one-count-in-federal-crypto-case/)

[4] title4 (https://www.coindesk.com/policy/2025/08/06/roman-storm-guilty-of-unlicensed-money-transmitting-conspiracy-in-partial-verdict)

[5] title5 (https://cryptonews.com/news/roman-storm-found-guilty-on-one-charge-partial-mistria/)

[6] title6 (https://www.yahoo.com/news/articles/us-jury-deadlocks-tornado-cash-171253018.html)

[7] title7 (https://www.mexc.com/news/roman-storm-convicted-in-tornado-cash-case-but-jury-balks-at-key-doj-claims/64013)

[8] title8 (https://www.coinspeaker.com/tornado-cash-developer-roman-storm-found-guilty-of-operating-illegal-money-transfer-business/)