TLDR
- Roman Storm convicted of conspiracy to operate an unlicensed money transmitting business
- Jury deadlocked on money laundering and North Korea sanctions charges
- Storm faces up to five years in prison for the single conviction
- Storm remains free on bail until sentencing
- $3 million was raised for his legal defense fund from prominent crypto figures
Roman Storm, co-founder and developer of the cryptocurrency privacy tool Tornado Cash, has been found guilty on one of three federal charges after a lengthy trial in New York. The Manhattan jury convicted Storm of conspiracy to operate an unlicensed money transmitting business, which carries a maximum sentence of up to five years in prison.
The verdict came after four days of deliberation in the US District Court for the Southern District of New York. The jury was unable to reach a unanimous decision on two other charges: conspiracy to commit money laundering and conspiracy to violate North Korea sanctions.
Storm was arrested in 2023 following allegations that he helped hackers and cyber criminals, including North Korea’s Lazarus Group, launder more than $1 billion through Tornado Cash. Throughout the trial, Storm maintained his innocence on all charges.
OK- now in US v. Roman Storm, verdict watch Day 4 – now post-pedicure of juror, Qs of wallet(s) https://t.co/bpkSEywBpg Unsealing bid https://t.co/HpZrt1UroJ Inner City Press 1st book on the case https://t.co/I5v9z8JIhg [2d soon] & will live tweet, thread below pic.twitter.com/iuDY8reVxR
— Inner City Press (@innercitypress) August 6, 2025
The Prosecution’s Case
Prosecutors built their case by calling witnesses from the Federal Bureau of Investigation and Internal Revenue Service. They argued that Storm had the technical ability to modify Tornado Cash’s code to prevent its use for illegal activities but chose not to implement such safeguards.
The government’s case centered on the claim that Storm knew Tornado Cash was being used by criminals but continued to develop and operate the service without proper licensing or controls. They also alleged connections to North Korean hackers, though the jury did not reach a verdict on that charge.
Storm’s defense team countered by bringing in their own technical experts, including Ethereum core developer Preston Van Loon and NAXO co-founder Matthew Edman, who testified about the nature of decentralized software and privacy tools.
Legal Implications for Crypto Developers
Alex Urbelis, general counsel for the Ethereum Name Service, called the verdict “a mixed bag for crypto,” noting that the hung jury showed “real skepticism about the money laundering and sanctions charges.” However, he expressed disappointment about the conviction for operating an unlicensed money transmitter.
“This is a complex area where legal nuance and technical understanding matter,” Urbelis said. “I’m not convinced the jury fully understood the crucial divide between custodial and non-custodial systems—a distinction that, if properly recognized, should make a conviction here impossible.”
The case has raised concerns in the cryptocurrency community about the legal risks developers face when creating privacy-enhancing technologies, even when they don’t directly control how users utilize their software.
After the verdict, prosecutors requested that Storm be remanded to prison while awaiting sentencing, arguing he might be a flight risk. However, Judge Katherine Failla rejected this request, noting Storm’s family ties in the United States and the size of his bond.
“He may appeal, he has every incentive to stay and fight,” Failla said. “He is not a risk of flight, given the size of the bond. There is a lot of fighting left in this case before sentencing, and I think Mr. Storm will stay for it.”
Brian Klein, Storm’s attorney, expressed some relief at the partial verdict: “We are grateful the jury did not convict Roman for violating sanctions or laundering money. There are serious legal issues with the sole remaining count involving unlicensed money transmission. We will not stop fighting for Roman and expect him to be fully vindicated.”
The DeFi Education Fund has pledged to continue supporting Storm as he fights the conviction, with Executive Director Amanda Tuminelli calling it a “fundamentally flawed charge from the start.”
Storm’s legal defense received strong support from the cryptocurrency community, with over $3 million contributed to his defense fund. Major donors included Ethereum co-founder Vitalik Buterin, Paradigm founder Matt Huang, and the Ethereum Foundation.
The verdict comes just one week after the developers of Samourai Wallet, another cryptocurrency privacy tool, pleaded guilty to operating an unlicensed money transmitting business after reaching a deal with prosecutors to drop more serious money laundering charges.
A sentencing date for Storm has not yet been set, and it remains unclear whether prosecutors will retry him on the two charges that resulted in a hung jury.
