In a courtroom drama that has gripped the crypto community, the Manhattan jury deliberating the fate of Tornado Cash developer Roman Storm remains deadlocked on at least one of the charges against him. This development comes as the jury entered its fourth day of deliberations, with no sign of consensus in sight. Presiding over the case, District Judge Katherine Polk Failla of the Southern District of New York has urged the jury to persist in their discussions, a move aligning with prosecutors’ wishes for an Allen charge—essentially a judicial nudge to iron out disagreements and reach a unanimous verdict.
Jury’s Dilemma
The jury’s indecision is not without context. Over recent days, their notes reveal a meticulous examination of the case’s nuances, including procedural intricacies like venue justification. On day one, they questioned the evidence presented to the grand jury back in 2023—specifically, the rationale for bringing the case within the Southern District of New York. This scrutiny continued with requests for transcripts of an FBI agent’s testimony involving cell-site analysis on Tom Schmidt, a New York-based venture capitalist tied to Tornado Cash’s parent company, PepperSec Inc. It seems the jurors are skeptical about accepting the location-based evidence used to establish venue.
Moreover, the jury’s inquiries have extended to legal obligations surrounding foreign law enforcement requests and the role of intermediary wallets on the SDN list maintained by the Office of Foreign Asset Control. Such detailed questions underscore the complexity of the case and the intricate web of legal, technical, and ethical considerations at play. For a deeper dive into the regulatory implications, see our coverage of the SEC’s latest guidance.
The Stakes for Storm
Roman Storm faces serious charges: conspiracy to commit money laundering, conspiracy to operate an unlicensed money transmitting business, and conspiracy to violate international sanctions. Should the jury eventually convict him on all counts, Storm could be staring down the barrel of a maximum 45-year prison sentence. Prosecutors allege that Tornado Cash, under Storm’s guidance, served as a conduit for laundering over $1 billion in criminal proceeds. The accusations extend to aiding North Korea’s notorious hacking collective, the Lazarus Group, in their illicit activities.
Broader Implications for the Crypto World
The case of Roman Storm is far more than a courtroom battle; it’s emblematic of the broader regulatory challenges facing the crypto industry. Tornado Cash, a platform enabling cryptocurrency transactions to be anonymized, has long sat at the heart of debates over privacy versus regulation. Crypto analysts and experts are watching closely, recognizing that the outcome could set significant precedents for how decentralized platforms are governed and scrutinized by authorities. This follows a pattern of regulatory scrutiny, as seen in the Philippines SEC crackdown on unregistered crypto exchanges.
“Storm’s case highlights the tension between the innovative potential of blockchain technology and the need for regulatory oversight,” comments a leading crypto legal analyst. “It’s becoming a litmus test for how far authorities will go to control these decentralized systems.”
What Lies Ahead?
As the jury continues its deliberations, the crypto community waits with bated breath. Questions linger over whether a consensus can be reached or if a mistrial looms should the deadlock persist. The implications of either outcome could ripple through the crypto ecosystem—shaping future legal frameworks and influencing how developers navigate the complex intersection of innovation and regulation.
With the trial ongoing, one thing is clear: Roman Storm’s legal battles serve as a stark reminder of the challenges that lie ahead for the burgeoning world of crypto. The verdict, whenever it comes, will undoubtedly have lasting repercussions, raising fresh debates over the balance between technological advancement and the rule of law.
Source
This article is based on: Roman Storm Jury Deadlocked, Judge Tells Them to Keep Deliberating
Further Reading
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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.
