NEW YORK – The jury in the criminal trial of Roman Storm, co-founder of the cryptocurrency mixer Tornado Cash, has begun deliberations, with a verdict expected imminently. Storm faces charges of conspiracy to commit money laundering, conspiracy to operate an unlicensed money-transmitting business, and conspiracy to violate U.S. sanctions. The outcome of this landmark case could profoundly impact the future of decentralized finance and the liability of software developers.
Tornado Cash, launched in 2019, is a decentralized protocol designed to enhance transaction privacy by obscuring the links between crypto senders and recipients. Prosecutors allege that the platform was used to launder over $1 billion in illicit funds, including significant amounts stolen by North Korea’s state-sponsored Lazarus Group. If convicted, Storm could face up to 45 years in prison.
During closing arguments, federal prosecutors contended that Storm knowingly facilitated the laundering of criminal proceeds, arguing that privacy was merely a "cover story" for illegal activities. Assistant U.S. Attorney Benjamin Gianforti stated that the "real money wasn't in so-called 'privacy' for normal people," but rather "in hiding dirty money for criminals." He highlighted evidence suggesting the platform transferred $350 million from a wallet linked to Lazarus Group after sanctions were imposed.
Storm's defense team, however, maintained that he built Tornado Cash for legitimate privacy purposes and had no control over how malicious actors might misuse the decentralized protocol. Defense attorney David Patton argued that Storm's intent was not to assist criminals, emphasizing that "it is not enough to know that criminals use the product. You must want to help them. Roman’s intent was the opposite." The defense asserts that prosecuting Storm for writing open-source code infringes upon fundamental rights and sets a dangerous precedent.
The trial has drawn significant attention from the crypto community and civil liberties organizations, which view it as a critical test of whether developers can be held criminally liable for the actions of users on decentralized platforms. Zooko, the founder of privacy-focused cryptocurrency Zcash, remarked on social media that "Either verdict would be good for Zcash, but only one verdict would be justice for Roman and good for America," underscoring the broader implications for privacy-enhancing technologies.
As the jury weighs the complex arguments, the verdict will likely establish a significant legal precedent for the burgeoning Web3 ecosystem. The case's outcome will shape regulatory approaches to decentralized applications and the responsibilities of those who create and contribute to open-source software.