Ongoing debates surround the criminal proceedings against Roman Storm, a key figure in Tornado Cash's foundation.
In a landmark case for the cryptocurrency industry, Roman Storm, co-founder of Tornado Cash, has been convicted by a federal jury on August 6, 2025, of conspiring to operate an unlicensed money transmitting business. However, the jury was deadlocked and unable to reach a verdict on the more serious charges against him: conspiracy to commit money laundering and conspiracy to violate international sanctions.
The trial, which has raised questions about the criminal responsibility of developers of decentralized protocols, began in July 2025. The charges against Storm include allegations that Tornado Cash, a decentralized Ethereum protocol designed to preserve financial privacy through the mixing of digital assets, facilitated the laundering of several million dollars in cryptocurrencies.
The funds laundered are linked to the Lazarus Group, a hacker group sanctioned by the United States. The case against Storm and Tornado Cash was originally brought by the U.S. Department of Justice in 2023.
The conviction on the money transmitting count carries up to five years in prison, but the jury could not agree on the other two charges, which carry much stiffer potential penalties (up to 20 years). Prosecutors are considering whether to retry Storm on those charges.
The Regulatory Challenges
The case highlights the regulatory challenges faced by the crypto industry, as some sectors call for greater control to prevent illicit uses of cryptocurrencies, while others defend the importance of privacy and decentralization as fundamental principles of the blockchain ecosystem.
The conviction of Roman Storm, along with the recent lifting of sanctions imposed on Tornado Cash, has set a precedent that limits the government's ability to apply traditional economic sanctions to decentralized technologies. The court ruling recognized the complexity of applying traditional regulations to decentralized technologies in the crypto ecosystem.
The Debate Over Programmers' Responsibility
The prosecution argues that Tornado Cash creators can be held responsible for any illicit use of the platform by third parties, opening a debate about the extent of programmers' responsibility for users' actions. Roman Storm's defense argues that developing and publishing open-source software does not constitute a crime.
Storm's lawyers have accused prosecutors of not disclosing key communications with FinCEN that could be relevant to his defense. Many developers and privacy advocates have expressed concern about the criminalization of tools that enable private transactions without custody, with Storm stating he is being prosecuted solely for creating software that facilitates financial privacy.
Post-Verdict Status
Roman Storm remains out on bail, as the court found him not a flight risk, citing his U.S. ties and substantial bond posted pending sentencing. The criminal trial is a significant event in the legal history of cryptocurrencies, and the outcome could have far-reaching implications for the development and regulation of financial privacy technologies.
[1] "Tornado Cash co-founder Roman Storm convicted of operating unlicensed money transmitting business", CoinDesk, August 6, 2025. [2] "Roman Storm found guilty of operating unlicensed money transmitting business in Tornado Cash trial", The Block, August 6, 2025. [3] "Roman Storm convicted of operating unlicensed money transmitting business in Tornado Cash trial, jury deadlocks on money laundering and sanctions charges", Decrypt, August 6, 2025. [4] "Tornado Cash co-founder Roman Storm convicted of operating unlicensed money transmitting business", The Verge, August 6, 2025. [5] "Roman Storm, co-founder of Tornado Cash, convicted of operating unlicensed money transmitting business", TechCrunch, August 6, 2025.
- The crypto community continues to engage in discussions about the reasonable regulatory control over cryptocurrencies, with some emphasizing the importance of financial privacy and decentralization, and others advocating for stricter measures to prevent illicit uses.
- The ongoing debate over programmers' accountability for users' actions now centers on the conviction of Roman Storm, who was found guilty of operating an unlicensed money transmitting business related to Tornado Cash, but acquitted of conspiracy to commit money laundering and conspiracy to violate international sanctions.
