A Manhattan jury delivered a verdict finding Roman Storm, co-founder and developer of Tornado Cash, guilty on one felony charge related to conspiracy to run an unlicensed money transmitting business.
The US District Court for the Southern District of New York (SDNY) announced the decision, wherein Storm was convicted on conspiracy to operate an unlicensed money transmission service. This conviction may result in a prison sentence of up to five years.
However, the jury could not reach a unanimous decision on the other charges, including conspiracy to commit money laundering and conspiracy to violate sanctions against North Korea.
After four days of deliberation, the jury informed the court of their deadlock on these remaining charges. The judge subsequently instructed the jury to make every effort to reach a unanimous verdict.
The prosecution presented testimony primarily from witnesses associated with the Federal Bureau of Investigation, the Internal Revenue Service, and cybersecurity experts. These witnesses asserted that Storm had the capacity to alter Tornado Cash’s code to restrict illicit activities but opted not to implement such measures. Defense experts included prominent figures like Ethereum core developer Preston Van Loon and NAXO co-founder Matthew Edman, who provided counterarguments.
Roman Storm was indicted in August 2023 on several charges: money laundering, conspiracy to operate an unlicensed money transmitting business, and conspiracy to violate US sanctions. Throughout the trial and prior, Storm maintained his innocence and was released on bail since his arraignment.
Upcoming Sentencing and Legal Support
With sentencing scheduled within weeks, Storm faces potential imprisonment of up to five years. Judge Katherine Failla noted awareness of similar crypto-related cases tried in SDNY, where notable defendants, including former FTX CEO Sam Bankman-Fried, received prison sentences.
Support for Storm has been significant, with over $3 million raised for his legal defense. Major contributors include Ethereum co-founder Vitalik Buterin, Paradigm founder Matt Huang, and the Ethereum Foundation.
Storm’s sentencing date is yet to be set, and his legal team continues to contest the charges.
This verdict marks a significant development in regulatory approaches toward decentralized finance and crypto service providers, underscoring the legal challenges faced by privacy-focused blockchain developers.
