A jury in Manhattan federal court has delivered a verdict finding Roman Storm, a key figure in the development of
Tornado Cash, guilty of conspiring to run a business facilitating money transmission without proper licensing.
As reported by Inner City Press on August 6, the jury’s decision was not unanimous across all charges. While Storm was found not guilty of violating sanctions under the International Emergency Economic Powers Act (IEEPA), the jury could not reach a consensus on the charge of conspiracy to commit money laundering.
Amanda Tuminelli, who leads the DeFi Education Fund, has expressed strong reservations about the prosecution’s arguments regarding the unresolved money laundering and sanctions counts. She argues that these arguments rest on a “flawed and overly broad principle that software developers can be held accountable for how others use their code,” a principle she deems both inaccurate and dangerous.
Tuminelli has urged the Department of Justice (DOJ) to refrain from retrying Storm on these charges, suggesting that the “Trump DOJ” retains the authority and should exercise its discretion to prevent the Southern District of New York from pursuing this case further.
No Prison Sentence
Following the reading of the verdict, Assistant US Attorney Arad requested that Storm be taken into custody immediately. His argument was based on the standard presumption of detention following a conviction, combined with the assertion that Storm poses a flight risk given his background and access to substantial cryptocurrency holdings.
Prosecutors pointed to communications referencing potential “workarounds” related to immigration and alleged access to cryptocurrency wallets containing millions of dollars, including funds connected to Roman Semenov, a co-defendant who remains at large.
Storm’s legal team countered this motion, emphasizing his compliance with all existing bond conditions, including the surrender of his passport and the establishment of a bond secured by his home. Judge Katherine Polk Failla sided with the defense, stating her belief that Storm does not present a flight risk, particularly given that the guilty verdict only applies to the charge of unlicensed money transmission. She elaborated:
“He may appeal; he has every reason to remain and defend himself. He is not likely to flee, considering the significant value of his bond. There is substantial legal activity remaining in this case before sentencing, and I am confident that Mr. Storm will be present for it.”
The judge heard arguments on this matter immediately after receiving the jury’s note and the partial verdict, which followed an “Allen charge” earlier in the day urging the jury to continue deliberations. With the jury deadlocked on the money laundering charge and having acquitted Storm on the sanctions charge, prosecutors are expected to pursue a retrial on the unresolved counts.
According to journalist Eleanor Terrett, Storm, upon leaving the courtroom, expressed his views on the verdict:
“This is a significant victory. The ‘1960’ charge [referring to the unlicensed money transmitting charge] is baseless, and we intend to fight it vigorously.”
Terrett noted Storm’s relief at not being remanded to custody and emphasized that his five-year-old daughter is a primary motivation for him to continue contesting the single count on which he was convicted. Storm indicated that he is returning to Seattle for the time being.
Storm was initially charged in 2023 with conspiracy to launder money, operating an unlicensed money transmitting business, and violating US sanctions, all related to his involvement in the creation and operation of Tornado Cash, an Ethereum-based mixing service.
Prosecutors allege that Tornado Cash was used to launder over $1 billion by illicit actors, including the Lazarus Group, a cybercriminal organization backed by North Korea.