Manhattan Jury Delivers Mixed Verdict in Roman Storm Trial

However, the jury could not agree on other charges related to money laundering and sanctions. The case centered on whether Storm had the power to stop illicit use of the Tornado Cash protocol, with prosecutors arguing he did and the defense insisting the platform was fully decentralized. Storm has maintained his innocence, and now awaits sentencing. Tornado Cash Verdict In Roman Storm, co-founder and developer of Tornado Cash, was found guilty by a Manhattan jury on one charge of conspiracy to operate an unlicensed money transmittal business. The verdict was delivered in the US District Court for the Southern District of New York after a complex trial that spanned several days and featured testimony from federal agents and blockchain experts. While the jury was unable to reach a unanimous decision on the other charges—conspiracy to commit money laundering and conspiracy to violate US sanctions on North Korea—they did find Storm culpable for the felony offense, which carries a maximum sentence of five years in prison. Prosecutors argued that Storm had enough control over Tornado Cash to prevent its misuse by criminals and failed to implement safeguards, despite warnings. Witnesses from the FBI, IRS, and the hacking community supported this claim. The prosecution held firm that Storm knowingly allowed the protocol to be used for illicit activities, including money laundering linked to sanctioned entities. The defense countered by calling expert witnesses like Ethereum core developer Preston Van Loon and Matthew Edman of NAXO, who explained that Tornado Cash operated as an autonomous, decentralized platform and that Storm had no practical way to prevent its misuse after deployment. Storm was originally indicted in August of 2023 on several charges, including money laundering and conspiracy to violate US sanctions. He pleaded not guilty and stayed free on bail throughout the proceedings. Despite the partial verdict, his sentencing has not been scheduled just yet. Judge Katherine Failla, who presided over the case, acknowledged the context of crypto prosecutions in her courtroom, and pointed to some of the recent high-profile convictions including FTX’s Sam Bankman-Fried, former OpenSea executive Nathaniel Chastain, and OneCoin’s Karl Greenwood—all of whom received prison sentences . Storm consistently maintained his innocence, and his case has drawn a lot of attention and support from the crypto community. His legal defense fund raised more than $4 million in donations, with major contributions coming from Ethereum co-founder Vitalik Buterin, Paradigm’s Matt Huang, and the Ethereum Foundation. Storm’s legal defence donation count (Source: FreeRomanStorm ) Overall, the outcome of his sentencing could have major implications for how US courts treat developers of decentralized financial tools moving forward.