New York, NY – The high-profile trial of Roman Storm, co-founder of the cryptocurrency mixer Tornado Cash, commenced on July 14, 2025, in the Southern District of New York, where he faces charges of conspiracy to commit money laundering, conspiracy to operate an unlicensed money transmitting business, and conspiracy to commit sanctions violations. The U.S. Department of Justice (DOJ) alleges that Storm's software facilitated the laundering of over $1 billion in criminal proceeds, including hundreds of millions for North Korea's state-sponsored hacking group, Lazarus Group. The trial is actively proceeding as of July 23, 2025.
Prosecutors contend that Storm and his co-founders, Roman Semenov (who remains at large) and Alexey Pertsev (arrested in the Netherlands), knowingly allowed Tornado Cash to be used by cybercriminals. The indictment asserts that despite public claims of offering a privacy service, the developers were aware their platform served as a haven for illicit funds and failed to implement necessary anti-money laundering (AML) or Know Your Customer (KYC) controls.
Storm's defense maintains that Tornado Cash is a decentralized, immutable software protocol, not a business, and that he relinquished control over it before the alleged criminal activities occurred. His legal team argues that the development of code is a form of protected speech under the First Amendment, challenging the government's interpretation of the law in this novel case. A judge recently ruled that Storm's defense could discuss privacy in general terms during the trial, though not as an explicit "right to privacy."
A key element of the prosecution's case involves introducing testimony from individuals described as "scam victims." This aligns with the original social media post by Zooko, who stated, "> DoJ/FBI/SDNY/IRS-CI is trying to imprison Roman Storm—an American software developer—for decades because North Korea Gov used his software. And they introduced evidence supposedly tying their witness—a scam victim—to his Tornado Cash software..." Reports indicate the indictment cited instances where Storm and Semenov received complaints from hacking victims but allegedly declined to offer assistance, suggesting awareness of illicit use.
The ongoing trial carries significant implications for the broader decentralized finance (DeFi) industry and software development. The outcome could set a precedent for how regulators and law enforcement approach non-custodial protocols and the liability of developers for the actions of their users. The case highlights the complex intersection of technological innovation, financial privacy, and national security concerns.