Tornado Cash Co-Founder Found Guilty of Operating Unlicensed Money Business

Highlights:

• Tornado Cash co-founder has been found guilty by a jury of running an unlicensed money business.
• The jury reached no verdict on two charges but delivered a conviction for the unlicensed money transmitting offense.
• The crypto community has donated to support Roman Storm’s legal defense and planned appeal efforts.

Roman Storm has been found guilty by a jury for conspiracy to operate an unlicensed money transmitting business. The verdict came after four days of deliberation at the U.S. District Court in New York. The jury failed to come up with a unanimous view on two other charges that comprise conspiracy to commit money laundering and to breach North Korea sanctions. The court instructed the jury to keep deliberating before they delivered a partial verdict.

.@TornadoCash developer Roman Storm has been found guilty of money transmittinghttps://t.co/gRiVCi60fL pic.twitter.com/oNnS6U1LOM

— ICO Drops (@ICODrops) August 7, 2025

The guilty charge carries a maximum sentence of five years. The court has not yet scheduled the sentencing hearing. Prosecutors argued that Storm had the ability to adjust Tornado Cash’s code to prevent criminal misuse but chose not to act. They presented witnesses from the Federal Bureau of Investigation, the Internal Revenue Service, and individuals involved in hacking activities. The witnesses claimed Storm could have stopped the illegal use of the platform.

The legal team of Storm challenged the claims and brought in experts to support their case. Ethereum developer Preston Van Loon and cybersecurity expert Matthew Edman testified for the defense. The judge overseeing the case, Katherine Failla, mentioned that she considered the outcomes of other crypto cases, including those of Sam Bankman-Fried, Nathaniel Chastain, and Karl Greenwood. Each of these individuals received a prison sentence after their respective trials.

Tornado Cash Co-Founder Found Guilty Amid Mixed Jury Verdict

Although the jury did not convict Storm on all charges, the guilty verdict on the unlicensed transmission charge remains a serious outcome. Prosecutors requested that the court revoke his bail. However, Judge Failla denied the motion. She stated that there was more to resolve in the case and confirmed that Storm intended to fight the charge further.

After the verdict, Storm expressed relief about not being taken into custody. He also responded to the mixed outcome by saying that the jury’s failure to convict on two charges was a positive sign. Storm added that he would continue to contest the 1960 charge. Meanwhile, Storm is likely to file an appeal before sentencing.

🚨NEW: Just caught @rstormsf outside the courtroom. I asked how he was feeling. In a quiet voice, but with a noticeable smile, he told me:

“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,… https://t.co/ufgD40xWEn

— Eleanor Terrett (@EleanorTerrett) August 6, 2025

Supporters of Roman have raised over $3 million to pay for his defense attorneys. Vitalik Buterin, Paradigm founder Matt Huang, and the Ethereum Foundation have made major contributions to the cause. The funds have enabled Storm to cover the legal expenses during the trial.

Crypto Developers Raise Alarm Over DeFi Legal Exposure

The decision raised alarm in the wider crypto and DeFi community. A number of industry officials expressed concern that the verdict would have a precedent effect that could affect the future creation of privacy tools. Ryan Adams, the co-founder of Bankless, said this ruling puts developers of crypto and decentralized finance projects at greater risk. He noted that the court’s decision could discourage innovation in the privacy space.

Community groups have also responded with support. The Blockchain Association stated that it would assist Storm in the appeal over the conviction. The DeFi Education Fund supported this position and assured that they would support Storm in the appeal procedure. Meanwhile, prosecutors have not yet stated whether they plan to retry the charges on which the jury failed to reach a verdict.

Today, a jury in Manhattan issued a partial verdict in Roman Storm’s case: they convicted him on count 2, conspiracy to violate Section 1960, and did not reach a verdict for counts 1 and 3, conspiracy to launder money and violate sanctions. 

We are disappointed that the jury did…

— DeFi Education Fund (@fund_defi) August 6, 2025