Yeliz Akmaca 
In a landmark case heard in the Southern District of New York, the jury found Roman Storm guilty of conspiracy to operate an unlicensed money transmission business. However, the jury could not reach a verdict on the charges of money laundering and violating U.S. sanctions. Storm was released on a $2 million bail. The court stated that the charge carries a maximum sentence of five years in prison. The exact sentencing date has not yet been announced.
The Roman Storm case became a significant legal test for the compatibility of decentralized crypto protocols with the legal system. Storm’s defense argued that Tornado Cash was merely open-source software and that he could not be held responsible for how it was used. Nevertheless, the jury concluded that Storm conspired to operate an unlicensed money transmitting business. The verdict reignited debates around privacy and accountability in the crypto space.
Prosecutors described Tornado Cash as a “giant money laundering machine” and alleged that Storm profited millions from illegal transactions. The defense maintained that Storm was merely a software developer and had no control over the platform. Storm is expected to appeal the conviction and the case will continue.
A critical turning point during the trial was the U.S. Treasury Department’s 2022 decision to sanction Tornado Cash. The sanction came after the platform was used by North Korea-linked Lazarus Group to launder $625 million in stolen crypto from the Ronin bridge hack. Prosecutors argued that Storm was aware of the platform’s illegal usage following these developments but failed to take action. Evidence presented to the jury included marketing content found on Storm’s computer, t-shirt designs featuring the Tornado Cash logo on a washing machine, and satirical materials portraying the platform as a money laundering tool.
Tornado Cash and the Roman Storm Case’s Role in Crypto
Tornado Cash is a mixing protocol designed to obscure user transactions. Roman Storm repeatedly emphasized that he was not responsible for the software being used for illicit purposes by others. Despite this, the court found him guilty of conspiracy to operate an unlicensed money transmission business — setting a crucial legal precedent for the boundaries of decentralized protocols.
However, the jury’s inability to reach a verdict on money laundering and sanction violations suggested that Storm was not directly involved in criminal acts. The crypto community sees this as a key outcome for clarifying the liability of software developers. During the trial, Storm received significant support from figures such as Ethereum founder Vitalik Buterin and the Ethereum Foundation. Their backing highlighted the broader debate around privacy and freedom in the crypto world.
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