TLDR
- Tornado Cash’s Roman Storm convicted of unlicensed money transmission.
- Storm guilty on one charge; jury deadlocks on laundering, sanctions.
- Tornado Cash co-founder faces 5 years for crypto transmission crimes.
- Jury clears Storm on laundering, convicts on licensing in crypto case.
- Storm out on bail after partial Tornado Cash crypto trial conviction.
A Manhattan federal jury has convicted Roman Storm, co-founder of Tornado Cash, of conspiracy to operate an unlicensed money-transmitting business. The jury failed to reach a unanimous decision on two more serious charges: money laundering and sanctions violations. Storm now faces a maximum sentence of five years in prison, with sentencing yet to be scheduled.
JUST IN: The Tornado Cash trial has concluded.
Roman Storm has been found guilty of the conspiracy to operate an unlicensed Money Transmission Business charge.
— Simply Bitcoin (@SimplyBitcoinTV) August 6, 2025
Storm’s trial followed allegations that Tornado Cash facilitated over $1 billion in illicit crypto transactions. Prosecutors claimed he knowingly helped criminals launder stolen funds using the platform. Despite that, jurors acquitted him on the heavier charges after deliberating for four days.
The partial verdict followed a three-week trial in the Southern District of New York. Prosecutors described Tornado Cash as a “giant washing machine” for crypto fraud. Storm was allowed to remain on $2 million bail as the court awaits next steps.
Tornado Cash at the Center of Laundering Allegations
Federal prosecutors argued that Tornado Cash processed funds from at least 16 large-scale crypto hacks between 2020 and 2022. This included the Ronin hack, attributed to North Korea’s Lazarus Group, involving stolen crypto. Authorities claimed nearly half of the platform’s transaction volume came from illicit sources.
The software allowed users to obscure crypto origins by pooling deposits and withdrawing later in randomized amounts. Prosecutors said this method enabled bad actors to hide fund trails from law enforcement. They accused Storm of failing to intervene despite having the ability to modify the platform’s code.
Storm’s defense rejected the notion that he was responsible for third-party misuse. They insisted Tornado Cash ran autonomously once deployed and Storm no longer controlled it. The court heard arguments that building open-source privacy tools should not lead to criminal liability.
Technical Witnesses Support Defense’s Claims
The defense team called Ethereum developer Preston Van Loon and privacy expert Matthew Edman as expert witnesses. They testified that Storm could not prevent others from using the software in unlawful ways. Their statements emphasized Tornado Cash’s decentralized nature and lack of centralized control.
Andre Marcus Quiddaoen Llacuna admitted using Tornado Cash to launder stolen funds from NFT scams. He explained how the platform’s design made tracking funds extremely difficult. Jurors also heard from victims, including BitMart representatives, whose stolen crypto vanished into the system.
An FBI expert testified that Tornado Cash processed criminal proceeds worth over $1 billion. The court saw screenshots from Storm’s home computer promoting Tornado Cash with washing machine-themed graphics. Prosecutors claimed these showed he knowingly marketed to those seeking to launder money.
Partial Verdict Draws Mixed Reactions
Defense attorney Brian Klein confirmed that Storm would appeal the conviction. He stated the charge involved “serious legal issues” and emphasized Storm’s intention to remain in the country and contest it. Judge Katherine Polk Failla agreed to let him stay free on bail.
Crypto policy groups expressed concern over the verdict’s implications. The Blockchain Association and Coin Center criticized the charge, warning it could chill the development of open-source tools. Supporters had raised over $3 million for Storm’s legal defense.
Roman Semenov, another Tornado Cash co-founder, remains a fugitive. The third founder, Alexey Pertsev, is under house arrest in the Netherlands after his conviction. Prosecutors have not confirmed whether they will retry Storm on the two unresolved charges.
