TLDR
- Roman Storm, Tornado Cash co-founder, found guilty of conspiracy to run an unlicensed money transmitting business
- Jury deadlocked on money laundering and sanctions violation charges after four days of deliberation
- Storm faces up to five years in prison for the conviction, with sentencing date not yet scheduled
- Judge ruled Storm not a flight risk, allowing him to remain free on bail pending sentencing
- Prosecutors have not decided whether to retry Storm on the remaining charges where jury could not reach verdict
A Manhattan jury delivered a partial verdict Wednesday in the criminal trial of Tornado Cash co-founder Roman Storm. The jury found Storm guilty of conspiracy to operate an unlicensed money transmitting business after four days of deliberation.
The verdict came after jurors informed the court they were deadlocked on two other charges. These included conspiracy to commit money laundering and conspiracy to violate international sanctions against North Korea.
Storm was arrested in August 2023 on charges related to his role in developing Tornado Cash. Prosecutors alleged he helped criminals launder over $1 billion through the cryptocurrency mixing service. The charges carried potential sentences totaling decades in prison.
The three-week trial featured testimony from FBI agents, IRS officials, and cybersecurity experts. Prosecutors argued Storm could have modified Tornado Cash’s code to prevent criminal use but chose not to. Storm’s defense team countered with their own technical experts, including Ethereum core developer Preston Van Loon.
Mixed Reactions from Legal Community
Storm’s lawyer Brian Klein expressed gratitude that jurors rejected the money laundering and sanctions charges. He called the remaining conviction legally flawed and vowed to continue fighting the case.
However, legal experts offered mixed assessments of the verdict. Alex Urbelis from Ethereum Name Service called it “a mixed bag for crypto.” He expressed disappointment with the money transmitting conviction while noting jury skepticism on other charges.
The jury’s inability to reach unanimous decisions on two charges raises questions about prosecutorial strategy. Prosecutors told the court Wednesday they would confer internally about retrying Storm on the deadlocked charges.
District Judge Katherine Polke Failla will make the final sentencing decision. She referenced other high-profile crypto cases during the trial, including those of Sam Bankman-Fried and OneCoin’s Karl Greenwood.
Storm Remains Free Pending Sentencing
After the verdict, prosecutors requested Storm be jailed immediately pending sentencing. They argued he posed a flight risk due to his Russian birth and financial resources. Storm was actually born in Kazakhstan and holds U.S. citizenship.
Judge Failla rejected the prosecution’s request after hearing from Storm’s defense team. His lawyers emphasized his deep U.S. ties, including joint custody of a five-year-old daughter in Washington state. They also noted he surrendered his passport and posted a large bond.
The judge agreed Storm was not a flight risk given his family connections and legal obligations. She noted he has “every incentive to stay and fight” potential appeals. Storm will remain free on bail until his sentencing hearing.
The timing of any retrial decision now falls to the incoming Trump administration’s Department of Justice. Amanda Tuminelli from the DeFi Education Fund urged prosecutors not to pursue the remaining charges.
The case parallels recent developments with Samourai Wallet developers. Last week, Keonne Rodriguez and William Lonergan Hill pleaded guilty to similar unlicensed money transmitting charges. They accepted plea deals that dropped more serious money laundering allegations.
Storm’s conviction on the money transmitting charge carries a maximum five-year prison sentence. His legal team raised over $3 million for his defense, with donations from Ethereum founder Vitalik Buterin and other prominent figures.
The sentencing date has not been scheduled, and Storm maintains his innocence on all charges.
