A Manhattan jury has found Tornado Cash developer Roman Storm guilty of conspiring to run an unlicensed money transmission business. The verdict came after four days of deliberation, following a three-week trial. However, the jury was unable to reach a unanimous decision on the charges of conspiracy to commit money laundering and conspiracy to violate international sanctions.
A sentencing date has not been set, and it remains unclear whether prosecutors will pursue a retrial on the remaining charges. Storm's lawyers have expressed gratitude that the jury did not convict him on the sanctions and money laundering charges, citing serious legal issues with the count of unlicensed money transmission.
They have vowed to continue fighting for Storm's full vindication. The case began in 2023 when Storm was arrested and charged with helping hackers, including North Korea's Lazarus Group, launder over $1 billion in illicit funds through Tornado Cash. The verdict has been met with mixed reactions from the crypto community, with some expressing skepticism about the money laundering and sanctions charges, while others are disappointed by the conviction for operating an unlicensed money transmitter.
The distinction between custodial and non-custodial systems has been highlighted as a crucial aspect that may have been misunderstood by the jury. Following the verdict, prosecutors moved to have Storm remanded to prison, citing his Russian birth and alleged advice on cheating the immigration system.
However, Storm's lawyers argued that he is not a flight risk, given his deep family ties in the United States, including joint custody of a daughter and extended family. The judge ultimately sided with Storm's lawyers, allowing him to remain out on bail. The DeFi Education Fund has announced its continued support for Storm, calling the charge of operating an unlicensed money transmitting business 'fundamentally flawed.' The verdict comes on the heels of a similar case involving the developers of Samourai Wallet, who pleaded guilty to conspiracy to operate an unlicensed money transmitting business.