Jury returns partial guilty verdict for Tornado Cash co-founder; crypto industry dismayed

A US jury found Tornado Cash developer Roman Storm guilty of conspiracy to operate an unlicensed money-transmitting business, Inner City Press reports.

OK- now in US v. Roman Storm, verdict watch Day 4 — now post-pedicure of juror, Qs of wallet(s) https://t.co/bpkSEywBpg Unsealing bid https://t.co/HpZrt1UroJ Inner City Press 1st book on the case https://t.co/I5v9z8JIhg [2d soon] & will live tweet, thread below pic.twitter.com/iuDY8reVxR

— Inner City Press (@innercitypress) August 6, 2025

The jury could not reach a unanimous verdict on the money-laundering and sanctions charges. The US Department of Justice may bring a new trial on those counts.

What legal advocates say

Lawyers say the verdict poses risks for the entire decentralised-finance industry. They argue that a broad reading of the money-transmitter statute creates a precedent that authorities could use against other DeFi protocols.

“The problem is that many in the segment are concerned. They fear that the law could be applied to them just as it was to Tornado Cash,” said lawyer Aaron Brogan in a comment to Cointelegraph.

Variant Fund’s chief legal officer, Jake Chervinsky, called the verdict “a sad day for DeFi”.

Roman Storm was convicted for conspiracy to operate an unlicensed money transmitting business under Section 1960.

The jury was deadlocked on money laundering and sanctions. DOJ will decide in the coming days if it wants to retry those charges in a new trial.

A sad day for DeFi.

— Jake Chervinsky (@jchervinsky) August 6, 2025

He warned that the statute used by prosecutors poses an “existential threat” to decentralised applications.

Lawyer Zack Shapiro agreed with the “dismal conclusion” but noted a positive point: for now, Storm does not face “draconian” prison terms on the money-laundering charges.

Mixed verdict in the Tornado Cash trial:

(1) The jury could not reach a unanimous result as to whether Roman Storm was guilty of the money laundering conspiracy, meaning that they could not agree as to whether, by creating the TC smart contracts and offering the TC front end,…

— Zack Shapiro (@zackbshapiro) August 6, 2025

The Justice Department will decide in the coming days whether to retry the money-laundering and sanctions counts. In Chervinsky’s view, choosing not to seek a retrial would be a positive signal for the US crypto industry.

Samson Enzer, a partner at law firm CahillNXT, believes the split verdict points to a weak evidentiary record by the government. In his view, prosecutors failed to prove that Storm knowingly helped criminals launder money through Tornado Cash.

Enzer also considers a retrial on the unresolved counts unlikely.

He said the case will have serious consequences for the crypto industry. It raises the question of whether developers of non-custodial protocols must comply with AML/KYC rules.

Industry reaction

Industry figures criticised the decision and called it a dangerous precedent for open-source software developers.

“We are disappointed that the jury did not recognise that Storm should not be held responsible for the actions of third parties whom he could not control,” the DeFi Education Fund said.

Today, a jury in Manhattan issued a partial verdict in Roman Storm’s case: they convicted him on count 2, conspiracy to violate Section 1960, and did not reach a verdict for counts 1 and 3, conspiracy to launder money and violate sanctions.

We are disappointed that the jury did…

— DeFi Education Fund (@fund_defi) August 6, 2025

Coin Center’s executive director, Peter Van Valkenburgh, called the money-transmission charge “misplaced”.

Coin Center’s Seven Takeaways from the Storm Verdict:

▪️ 1. The sole conviction—unlicensed money transmission (18 U.S.C. § 1960)—turns mainly on legal/regulatory interpretation (“does this count as money transmission?”), not jury fact-finding.

▪️ 2. The court, at the…

— Peter Van Valkenburgh (@valkenburgh) August 6, 2025

He added that the decision is subject to appeal, and the organisation will do everything possible to support it. The Blockchain Association also urged him to appeal.

1/ Today’s guilty verdict on Count 2 against Roman Storm is disappointing and sets a dangerous precedent for open-source software developers. We urge him to appeal and stand ready to support that effort.

Statement from our Senior Counsel Laura Sanders and a short thread: pic.twitter.com/Yk4tlgg9l4

— Blockchain Association (@BlockchainAssn) August 6, 2025

Journalist Eleanor Terrett reported that Storm plans to contest the charge.

🚨NEW: Just caught @rstormsf outside the courtroom. I asked how he was feeling. In a quiet voice, but with a noticeable smile, he told me:

“It’s a big win. The ‘1960’ charge is bullshit and we’re going to fight it all the way. You know how President Trump said ‘fight, fight,… https://t.co/ufgD40xWEn

— Eleanor Terrett (@EleanorTerrett) August 6, 2025

In July, lawyers for the Tornado Cash developer said they intended to file a motion to have the proceedings declared invalid.