In a courtroom drama that has captivated the crypto world, Roman Storm, a developer behind the controversial Tornado Cash platform, was found guilty of conspiring to operate an unlicensed money transmitting business. This verdict was reached by a Manhattan jury on Wednesday, August 6, 2025. However, the jury found themselves at an impasse regarding the more severe charges of conspiracy to commit money laundering and violating international sanctions, leading to a partial verdict.
A Convoluted Legal Landscape
Storm’s case has drawn significant attention not only because of its implications for crypto privacy tools but also due to the complex legal nuances involved. Tornado Cash, a platform designed to obfuscate transactions, has been under intense scrutiny for allegedly enabling the laundering of over $1 billion by cybercriminals, notably the infamous North Korean hacking group, Lazarus.
“We are grateful the jury did not convict Roman for violating sanctions or laundering money,” expressed Brian Klein from Waymaker LLP, Storm’s legal counsel. “There are significant legal issues with the remaining count related to unlicensed money transmission. We will not stop fighting for Roman and expect him to be fully vindicated.” The legal waters here are murky, highlighting the ongoing debate over the responsibility of software developers for the actions of those who use their creations.
The Broader Implications for Crypto Privacy
The conviction has sparked a flurry of reactions from the cryptocurrency community. “Today’s verdict is a mixed bag for crypto,” remarked Alex Urbelis, general counsel for the Ethereum Name Service. The jury’s inability to reach a unanimous decision on the more severe charges indicates skepticism, yet the conviction for unlicensed money transmission raises concerns. Urbelis emphasized the jury’s apparent misunderstanding of the critical divide between custodial and non-custodial systems—a distinction pivotal in the world of decentralized finance (DeFi).
This trial echoes a broader trend of increased scrutiny on crypto privacy tools. Just last week, developers of the Bitcoin-focused Samourai Wallet pleaded guilty to similar charges, marking a significant shift in the regulatory landscape for privacy-centric crypto projects. This is reminiscent of the recent case involving a CoinDCX Employee Linked to $44 Million Crypto Theft, further illustrating the growing legal challenges facing the crypto industry.
What’s Next for Roman Storm?
While Storm’s legal battles are far from over, District Judge Katherine Polk Failla has allowed him to remain out of prison on bail, acknowledging his strong ties to the United States. “He may appeal, he has every incentive to stay and fight,” Judge Failla noted, stressing that the ongoing legal proceedings offer Storm ample reason to remain in the country.
Amanda Tuminelli, from the DeFi Education Fund, voiced support for Storm, criticizing the charges as fundamentally flawed. “The notion that a developer can be held accountable for third parties’ use of their code is both inaccurate and dangerous,” she commented on social media. The decision now rests with the Department of Justice, under the Trump administration, on whether to pursue further action against Storm.
A Precarious Precedent?
The outcome of this case holds significant implications for the crypto industry, particularly those developing privacy-enhancing technologies. It raises critical questions about the extent of liability for developers and the capacity of legal systems to adapt to the rapidly evolving landscape of decentralized technologies. The uncertainty surrounding Storm’s remaining charges leaves many wondering how these issues will shape the future of crypto regulation. This uncertainty is compounded by the recent developments in the industry, such as Coinbase launching an embedded wallets tool as self-custody and DeFi gain momentum, highlighting the ongoing evolution of crypto technologies.
As the crypto community watches closely, the case against Roman Storm is poised to set a precedent with far-reaching consequences. With the sentencing date yet to be determined and potential appeals on the horizon, the story is far from over. What remains clear is that the intersection of technology, privacy, and the law will continue to provoke intense debate and scrutiny in the months to come.
Source
This article is based on: Roman Storm Guilty of Unlicensed Money Transmitting Conspiracy in Partial Verdict
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
