Roman Storm Found Guilty on Unlicensed Money Charge

Tornado Cash co-founder Roman Storm has been convicted on one count related to operating an unlicensed money transmitting business. A Manhattan jury returned the verdict after several days of deliberation, marking a major development in one of the most closely watched crypto-related cases in recent years. The court did not convict Storm on two other charges tied to money laundering and North Korea sanctions, as jurors could not reach a unanimous decision.

Good to know

• Roman Storm faces up to five years in prison for conspiracy to run an unlicensed money transmittal business.
• The jury deadlocked on charges related to money laundering and North Korea sanctions.
• Storm had been free on bail since pleading not guilty in August 2023.

The trial played out over several weeks in the Southern District of New York, where prosecutors accused Storm of knowingly allowing Tornado Cash to be used for illegal transactions. They argued he could have modified the code to prevent criminal misuse but chose not to. Witnesses included agents from the FBI, IRS, and even hackers. Defense attorneys brought in Ethereum developer Preston Van Loon and NAXO co-founder Matthew Edman to argue Storm had limited control over the decentralized protocol.

Tornado Cash Co-Founder Found Guilty on One Charge After Jury Splits on Others

Jurors told the judge they were stuck on some charges earlier in the week. That led the court to issue a special instruction encouraging them to try again for a unanimous verdict. Eventually, they convicted Storm only on the unlicensed money transmitter charge — a felony that carries a maximum five-year sentence.

Storm was first indicted in August 2023 on three counts: conspiracy to commit money laundering, operating an unlicensed money business, and violating U.S. sanctions law. While he pleaded not guilty to all charges, the government moved forward with a case centered on Tornado Cash’s role in mixing cryptocurrency used by hackers and other illicit actors.

Sentencing has not yet been scheduled, and Storm remains out on bail pending next steps in the legal process.