Key Takeaways
- Roman Storm was found guilty on one count: operating an unlicensed money-transmitting business.
- The jury could not reach a verdict on the more serious money laundering and sanctions violation charges.
- The judge declined to remand him into custody, allowing Storm to remain free as sentencing looms.
Roman Storm, co-founder of controversial privacy-focused crypto mixer tool Tornado Cash, walked out of a Manhattan courtroom a free man on Wednesday—at least for now.
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Roman Storm Wins Partial Victory in Tornado Cash Case
The jury convicted Storm on a single charge of conspiring to operate an unlicensed money-transmitting business.
However, they were deadlocked on the two heavier counts: conspiracy to commit money laundering and conspiracy to violate U.S. sanctions.
Those charges could have carried sentences of up to 25 and 20 years, respectively.
Judge Katherine Polk Failla, presiding over the high-stakes trial in the Southern District of New York, denied the prosecution’s request to immediately remand Storm into custody, stating:
“There is a lot of fighting left in this case before sentencing, and I think Mr. Storm will stay to fight it.”
Roman Storm: “It’s a Big Win”
Storm was visibly relieved outside the courtroom, offering a rare smile to reporters. Speaking to crypto reporter Eleanor Terrett, he said:
“It’s a big win. The ‘1960’ charge is bullshit, and we’re going to fight it all the way. You know how President Trump said, ‘fight, fight, fight’? We’ll do that too.”
He also emphasized his motivation to keep fighting for his freedom, referencing his 5-year-old daughter and noting that he was heading home to Seattle the next day.
The Charges and What They Mean
Storm was originally charged by the U.S. Department of Justice (DOJ) in August 2023 with three felonies:
- Conspiracy to operate an unlicensed money-transmitting business (the charge he was convicted of).
- Conspiracy to commit money laundering.
- Conspiracy to violate U.S. sanctions under the International Emergency Economic Powers Act (IEEPA).
The defense centered on the argument that Tornado Cash was a decentralized, immutable, and open-source protocol.
Once deployed, they argued, neither Storm nor his co-founders had any control over how the code was used.
Prosecutors countered that Storm and his team knowingly enabled criminals, including North Korean hackers, to launder money through the platform.
The split verdict leaves many legal observers watching closely—especially developers working on decentralized, privacy-focused tools.
Broader Implications for DeFi and Open-Source Development
Although Storm was found guilty on the least severe charge, the case sets a potentially chilling precedent.
At the heart of the case is a legal gray area. Should developers of open-source, decentralized protocols be held liable for how their software is used?
If courts continue to side with regulators and prosecutors, it could reshape the boundaries of innovation in crypto.
The guilty verdict also raises questions about whether all decentralized protocols that facilitate asset transfers need to register as money service businesses, a move that could drastically alter the structure of decentralized finance in the U.S.
What’s Next
Sentencing for Roman Storm is still pending, and the DOJ could choose to retry the two unresolved counts.
For now, Storm remains free, his legal team preparing to appeal or contest the guilty verdict.
The Tornado Cash saga is far from over—and its outcome could shape the future of privacy in crypto.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
