New York – Roman Storm, co-founder of the cryptocurrency mixer Tornado Cash, was found guilty of conspiracy to operate an unlicensed money transmitting business by a Manhattan jury on August 6, 2025. This partial verdict marks a significant outcome in a closely watched case, as jurors were unable to reach a unanimous decision on the more severe charges of conspiracy to commit money laundering and conspiracy to violate U.S. sanctions. The conviction carries a maximum sentence of five years in prison.
The jury's split decision is seen by some as a less definitive victory for the prosecution than anticipated. Journalist Laura Shin, commenting on the verdict, noted that it is considered a "weak outcome for the government" given the deadlocked charges. Prosecutors had accused Storm and his co-founder, Roman Semenov (who remains at large), of facilitating over $1 billion in illicit transactions, including funds laundered by the North Korean Lazarus Group.
The defense maintained that Tornado Cash operated as a decentralized, open-source protocol beyond the control of its creators once deployed. They argued that Storm's intent was to provide privacy tools, not to aid criminal activity. The trial saw testimony from federal agents and blockchain experts, with the prosecution asserting that Storm knowingly allowed the platform to be used for illicit purposes by not implementing safeguards.
This verdict carries significant implications for open-source developers and the broader crypto industry. Legal experts and industry advocates have expressed concerns that holding developers liable for the downstream uses of their code, even if immutable, could chill innovation in privacy-focused software. The Blockchain Association urged Storm to appeal, stating, "Today's guilty verdict on Count 2 against Roman Storm is disappointing and sets a dangerous precedent for open-source software developers."
The case also intersects with evolving U.S. Department of Justice policy under a new administration. A memo from Deputy Attorney General Todd Blanche, titled "Ending Regulation by Prosecution," suggests a more cautious approach to prosecuting unregistered money transmitting businesses if there was a good faith belief that registration was not required. This policy could influence the future handling of similar crypto-related cases and potential retrials for the unresolved charges against Storm.
Further legal developments are anticipated, as the U.S. prosecutors have yet to state their next course of action regarding the deadlocked counts. The outcome of this trial, coupled with the recent guilty pleas of Samourai Wallet founders on similar charges, underscores the ongoing tension between technological innovation in decentralized finance and regulatory enforcement, particularly concerning privacy tools.