Key Takeaways
- Roman Storm was convicted of conspiracy to run an unlicensed money-transmitting business—carries up to 5 years in prison.
- Jurors deadlocked on charges of money laundering and violating North Korea sanctions.
- His sentencing hearing is pending; supporters raised $3M for his legal defense.
In a significant verdict for crypto regulation, Tornado Cash co-founder Roman Storm was found guilty by a Manhattan jury for conducting an unlicensed money transmitting service.
The jury was unable to reach a verdict on two additional charges—money laundering and sanctions violations.
Guilty on One Count, Deadlocked on Others
After four days of deliberation, the jury unanimously convicted Storm of running an unlicensed crypto-mixing operation. The two unresolved counts reflect jury uncertainty around the more complex allegations.
The trial featured testimony from FBI, IRS, and hacking victims, contrasted with defense experts like Ethereum’s Preston Van Loon.
Will The Tornado Cash Co-founder Face Prison Time?
Judge Katherine Failla noted the precedent of crypto-related cases like SBF and others receiving prison sentences. Sentencing is upcoming.
Notably, Storm’s defense raised over $3 million from crypto luminaries, including Vitalik Buterin and Paradigm’s Matt Huang.
Final Thoughts
The verdict marks a landmark moment in how developers may be held accountable for crypto infrastructure facilitation.
While only one count held, the outcome emphasizes legal risks in protocol development and sets a new precedent for decentralized finance regulation.
Frequently Asked Questions
Which charge was Storm found guilty of?
Conspiracy to operate an unlicensed money transmitting business.
What happens next?
A sentencing hearing is pending; Storm faces up to five years’ imprisonment.
Who supported Storm’s defense?
Prominent figures including Vitalik Buterin and others contributed to his $3M legal fund.
