{"id":25893,"date":"2025-08-07T10:12:37","date_gmt":"2025-08-07T07:12:37","guid":{"rendered":"https:\/\/forklog.com\/en\/jury-returns-partial-guilty-verdict-for-tornado-cash-co-founder-crypto-industry-dismayed\/"},"modified":"2025-08-07T10:12:37","modified_gmt":"2025-08-07T07:12:37","slug":"jury-returns-partial-guilty-verdict-for-tornado-cash-co-founder-crypto-industry-dismayed","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/jury-returns-partial-guilty-verdict-for-tornado-cash-co-founder-crypto-industry-dismayed\/","title":{"rendered":"Jury returns partial guilty verdict for Tornado Cash co-founder; crypto industry dismayed"},"content":{"rendered":"<p>A US jury found Tornado Cash developer Roman Storm guilty of conspiracy to operate an unlicensed money-transmitting business, Inner City Press reports.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">OK- now in US v. Roman Storm, verdict watch Day 4 \u2014 now post-pedicure of juror, Qs of wallet(s) <a href=\"https:\/\/t.co\/bpkSEywBpg\">https:\/\/t.co\/bpkSEywBpg<\/a> Unsealing bid <a href=\"https:\/\/t.co\/HpZrt1UroJ\">https:\/\/t.co\/HpZrt1UroJ<\/a> Inner City Press 1st book on the case <a href=\"https:\/\/t.co\/I5v9z8JIhg\">https:\/\/t.co\/I5v9z8JIhg<\/a> [2d soon] &#038; will live tweet, thread below <a href=\"https:\/\/t.co\/iuDY8reVxR\">pic.twitter.com\/iuDY8reVxR<\/a><\/p>\n<p>\u2014 Inner City Press (@innercitypress) <a href=\"https:\/\/twitter.com\/innercitypress\/status\/1953083003892011143?ref_src=twsrc%5Etfw\">August 6, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>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.<\/p>\n<h2 class=\"wp-block-heading\">What legal advocates say<\/h2>\n<p>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.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThe 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,\u201d said lawyer Aaron Brogan in a comment to <\/em><a href=\"https:\/\/cointelegraph.com\/news\/partial-verdict-next-steps-roman-storm-trial\"><em>Cointelegraph<\/em><\/a><em>.<\/em><\/p>\n<\/blockquote>\n<p>Variant Fund\u2019s chief legal officer, Jake Chervinsky, called the verdict \u201ca sad day for DeFi\u201d.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Roman Storm was convicted for conspiracy to operate an unlicensed money transmitting business under Section 1960.<\/p>\n<p>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.<\/p>\n<p>A sad day for DeFi.<\/p>\n<p>\u2014 Jake Chervinsky (@jchervinsky) <a href=\"https:\/\/twitter.com\/jchervinsky\/status\/1953142245168672856?ref_src=twsrc%5Etfw\">August 6, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>He warned that the statute used by prosecutors poses an \u201cexistential threat\u201d to decentralised applications.<\/p>\n<p>Lawyer Zack Shapiro agreed with the \u201cdismal conclusion\u201d but noted a positive point: for now, Storm does not face \u201cdraconian\u201d prison terms on the money-laundering charges.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Mixed verdict in the Tornado Cash trial:<\/p>\n<p>(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,\u2026<\/p>\n<p>\u2014 Zack Shapiro (@zackbshapiro) <a href=\"https:\/\/twitter.com\/zackbshapiro\/status\/1953149978123079941?ref_src=twsrc%5Etfw\">August 6, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The Justice Department will decide in the coming days whether to retry the money-laundering and sanctions counts. In Chervinsky\u2019s view, choosing not to seek a retrial would be a positive signal for the US crypto industry.<\/p>\n<p>Samson Enzer, a partner at law firm CahillNXT, <a href=\"https:\/\/www.theblock.co\/post\/365856\/tornado-cash-verdict-sets-off-a-storm-of-protest-as-crypto-advocates-push-for-a-potential-appeal\">believes<\/a> 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.<\/p>\n<p>Enzer also considers a retrial on the unresolved counts unlikely.<\/p>\n<p>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 <span data-descr=\"anti-money laundering\/know your customer\" class=\"old_tooltip\">AML\/KYC<\/span> rules.<\/p>\n<h2 class=\"wp-block-heading\">Industry reaction<\/h2>\n<p>Industry figures criticised the decision and called it a dangerous precedent for open-source software developers.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWe 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,\u201d the DeFi Education Fund said.<\/em><\/p>\n<\/blockquote>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Today, a jury in Manhattan issued a partial verdict in Roman Storm\u2019s 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. <\/p>\n<p>We are disappointed that the jury did\u2026<\/p>\n<p>\u2014 DeFi Education Fund (@fund_defi) <a href=\"https:\/\/twitter.com\/fund_defi\/status\/1953139611988787566?ref_src=twsrc%5Etfw\">August 6, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Coin Center\u2019s executive director, Peter Van Valkenburgh, called the money-transmission charge \u201cmisplaced\u201d.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Coin Center\u2019s Seven Takeaways from the Storm Verdict:<\/p>\n<p>\u25aa\ufe0f 1. The sole conviction\u2014unlicensed money transmission (18 U.S.C. \u00a7 1960)\u2014turns mainly on legal\/regulatory interpretation (\u201cdoes this count as money transmission?\u201d), not jury fact-finding.<\/p>\n<p>\u25aa\ufe0f 2. The court, at the\u2026<\/p>\n<p>\u2014 Peter Van Valkenburgh (@valkenburgh) <a href=\"https:\/\/twitter.com\/valkenburgh\/status\/1953149843565605015?ref_src=twsrc%5Etfw\">August 6, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>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.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">1\/ Today&#8217;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.<\/p>\n<p>Statement from our Senior Counsel Laura Sanders and a short thread: <a href=\"https:\/\/t.co\/Yk4tlgg9l4\">pic.twitter.com\/Yk4tlgg9l4<\/a><\/p>\n<p>\u2014 Blockchain Association (@BlockchainAssn) <a href=\"https:\/\/twitter.com\/BlockchainAssn\/status\/1953152364505890980?ref_src=twsrc%5Etfw\">August 6, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Journalist Eleanor Terrett reported that Storm plans to contest the charge.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">\ud83d\udea8NEW: Just caught <a href=\"https:\/\/twitter.com\/rstormsf?ref_src=twsrc%5Etfw\">@rstormsf<\/a> outside the courtroom. I asked how he was feeling. In a quiet voice, but with a noticeable smile, he told me:<\/p>\n<p>\u201cIt\u2019s a big win. The \u20181960\u2019 charge is bullshit and we\u2019re going to fight it all the way. You know how President Trump said \u2018fight, fight,\u2026 <a href=\"https:\/\/t.co\/ufgD40xWEn\">https:\/\/t.co\/ufgD40xWEn<\/a><\/p>\n<p>\u2014 Eleanor Terrett (@EleanorTerrett) <a href=\"https:\/\/twitter.com\/EleanorTerrett\/status\/1953146088602427664?ref_src=twsrc%5Etfw\">August 6, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In July, lawyers for the Tornado Cash developer <a href=\"https:\/\/forklog.com\/en\/news\/tornado-cash-co-founders-defense-seeks-dismissal-of-legal-proceedings\">said<\/a> they intended to file a motion to have the proceedings declared invalid.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 \u2014 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 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":25892,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1162,1314],"class_list":["post-25893","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-court-cases","tag-tornado-cash"],"aioseo_notices":[],"amp_enabled":true,"views":"90","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/25893","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=25893"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/25893\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/25892"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=25893"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=25893"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=25893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}