Jury Convicts Roman Storm on Unlicensed Money Transmission, Hung on Laundering, Not Guilty on Sanctions

A Manhattan federal jury found Tornado Cash developer Roman Storm guilty of conspiring to operate an unlicensed money transmitting business. As Inner City Press reported on August 6, the jury returned a mixed verdict by finding Storm not guilty of sanctions evasion under IEEPA, and unable to reach a unanimous verdict on money laundering conspiracy.

Amanda Tuminelli, executive director of the DeFi Education Fund, criticized the prosecution’s theories on the hung counts of money laundering and sanctions, arguing they rely on “the inaccurate, dangerous, and limitless principle that a software developer can be held responsible for third parties’ use of their code.”  She urged the DOJ not to retry Storm on those charges and noted that the “Trump DOJ” can and should choose not to allow the Southern District of New York to pursue this case further.

Following the verdict announcement, Assistant US Attorney Arad moved to remand Storm to custody, arguing there is a presumption of detention after conviction and that Storm poses a flight risk given his background and access to significant crypto funds.  Prosecutors referenced messages about immigration “workarounds” and alleged access to multi-million-dollar wallets, including funds linked to co-defendant Roman Semenov, who remains at large.

Storm’s defense opposed remand, noting he has complied with bond conditions, surrendered his passport, and has a home-secured bond in place. Judge Katherine Polk Failla stated her belief that Storm is not a risk by being considered guilty only on the money transmitting charge. She added: He may appeal, he has every incentive to stay and fight. He is not a risk of flight, given the size of the bond. There is a lot of fighting left in this case before sentencing, and I think Mr. Storm will stay for it.”

The judge took arguments on the spot after receiving the jury’s note and partial verdict, which came after an Allen charge urging further deliberations earlier in the day. With the jury hung on the laundering count and an acquittal on sanctions, prosecutors will seek to retry the counts. Journalist Eleanor Terrett reportedly caught Storm leaving the courtroom. He stated: “It’s a big win. The ‘1960’ charge is bullshit and we’re going to fight it all the way.” She said he was relieved not to be remanded and noted that his 5-year-old daughter is a key reason he will keep contesting the single count on which he was convicted. Storm told her that he’s he back to Seattle for now.

Storm was charged in 2023 with conspiracy to launder money, operate an unlicensed money transmitting business, and violate US sanctions, tied to his role in building and operating the Ethereum-based mixer Tornado Cash.  Prosecutors say Tornado Cash was used to launder over $1 billion by bad actors, including North Korea-backed Lazarus Group.