tl;dr
A Manhattan federal jury found Tornado Cash developer Roman Storm guilty of conspiring to operate an unlicensed money transmitting business but acquitted him of sanctions evasion and deadlocked on a money laundering conspiracy charge. Amanda Tuminelli of the DeFi Education Fund criticized prosecutin...
A Manhattan federal jury found Tornado Cash developer Roman Storm guilty of conspiring to operate an unlicensed money transmitting business. The jury, however, returned a mixed verdict, acquitting Storm of sanctions evasion under IEEPA and deadlocking on the money laundering conspiracy charge.
Amanda Tuminelli, executive director of the DeFi Education Fund, criticized the prosecution’s approach, arguing that holding a software developer accountable for third-party use of their code sets a dangerous precedent. She urged the Department of Justice to refrain from retrying Storm on the unresolved charges, emphasizing the discretion of the Trump-era DOJ in potentially halting further prosecution.
Following the verdict, prosecutors sought to detain Storm, citing a presumption of detention after conviction and alleging a flight risk due to his access to significant crypto funds and references to immigration "workarounds." The defense countered that Storm has complied with bond conditions and surrendered his passport. Judge Katherine Polk Failla agreed with the defense, stating that Storm is unlikely to flee and has strong incentives to remain and fight the case through appeal and sentencing.
The jury’s mixed verdict came after an Allen charge aimed at encouraging further deliberation. With the hung jury on laundering and acquittal on sanctions, prosecutors plan to retry those specific counts against Storm.
After the verdict, Storm expressed relief at avoiding detention and declared his intent to continue fighting the conviction for the unlicensed money transmitting charge, referencing his young daughter as motivation. He is now returning to Seattle pending further legal proceedings.
Storm was originally charged in 2023 with conspiracy to launder money, operate an unlicensed money transmitting business, and violate U.S. sanctions due to his work on the Ethereum-based mixer Tornado Cash. Prosecutors allege that Tornado Cash facilitated laundering of over $1 billion by criminal entities, including the North Korea-backed Lazarus Group.