The founder of Tornado Cash Roman Storm has been found guilty of “conspiracy to operate an unlicensed money transmitting business,” after months of trial and highly divisive accusations in the crypto community.
The service, known for cryptocurrency mixing and on-chain privacy, according to prosecutors has facilitated the laundering of over 1 billion dollars in criminal proceeds, including funds linked to the notorious Lazarus group from North Korea.
OK- ora nel caso US contro Roman Storm, attesa del verdetto Giorno 4 – ora post-pedicure del giurato, domande sui portafogli https://t.co/bpkSEywBpg Richiesta di desecretazione https://t.co/HpZrt1UroJ Inner City Press 1° libro sul caso https://t.co/I5v9z8JIhg [2° presto] & farà live tweet, thread sotto pic.twitter.com/iuDY8reVxR
— Inner City Press (@innercitypress) 6 agosto 2025
What has the developer of Tornado Cash been accused of?
Roman Storm, one of the most well-known figures in the DeFi world, faced as many as three charges:
- Unauthorized management of money transmission activities
- Conspiracy for money laundering
- Violation of sanctions against North Korea
On Wednesday, the jury found Storm guilty only of the first count – operating an unauthorized transmission business – while did not reach a verdict on the more pressing issues: conspiracy to launder money and the related sanctions. This implies that, for now, his guilt is limited to the “technical” realm of licenses and anti-money laundering rules in the United States.
What does the conviction of Roman Storm mean for DeFi?
The weight of this sentence is enormous. For the first time, an open-source DeFi developer has been held criminally liable by the US court for writing software also used for illicit purposes. The US prosecutors made it clear: Tornado Cash allowed anyone to hide the origin of funds, including those of individuals involved in international cybercrime.
According to the accusation, over a billion dollars in “dirty” money allegedly passed through the channels of Tornado Cash. Among these, funds stolen by the Lazarus group, believed to be linked to North Korea and already known for sanctions and hacker attacks on the crypto ecosystem.
The defense, however, calls upon the entire community: Storm was just a developer of open-source code. After the launch of Tornado Cash, they argue, his control was minimal. The case remains emblematic: can a dev be held responsible if their software is also used by criminals?
How the process unfolded: dates and key points
Roman Storm was arrested and transferred to the United States in the summer of 2023. The case, which has now become a textbook example for the entire DeFi, focused both on the technical aspects of managing a crypto mixer and on the ethical and national security issues related to the sanctions against North Korea.
The jury has delivered its verdict. Storm is declared guilty of operating money transfer activities without a license, but the court does not reach decisions on the other two charges.
Immediately after the verdict, the prosecutors requested the immediate detention of Storm, emphasizing the risk of flight: Storm, they stated in court, “has advised people on how to deceive the immigration system” and holds dual Russian/US citizenship. The defense, represented by attorney Keri Axel, pointed out that Storm has complied with all probation obligations, having already surrendered his passport.
The decision on the detention regime pending sentencing is still under review by Judge Failla.
What happens now: final judgment and legal precedents
The final verdict for Roman Storm will be communicated on a future date that has not yet been set. Consequently, it is not yet clear what sentence he will have to serve, nor any potential future legal or regulatory actions against DeFi developers in similar cases.
The verdict still represents a partial victory for the government: by recognizing the illegality of money transmission without a license in the USA, it paves the way for new regulatory interventions on decentralized platforms.
However, the question of how to assess the criminal liability of DeFi developers who release open source code remains without a definitive answer. The lack of agreement on money laundering and sanctions highlights that it will be difficult to prosecute those who develop permissionless platforms, even if used for illegal activities.
Possible consequences for Bitcoin and DeFi
While the trial of Roman Storm quickly became a topic of discussion in major crypto Telegram channels and on X, the central question remains: is DeFi at risk of regulatory tightening?
Platforms like Bitcoin and mixing services indeed risk undergoing further checks or restrictions, especially in the United States, if deemed facilitation tools for criminal activities. However, many defenders of DeFi highlight the challenging distinction between tools and illicit use.
This case is already setting a precedent in the crypto world: every developer might wonder what limits to set on their work and how to protect themselves. If the ruling were particularly severe, we might witness a migration of talents and DeFi projects towards more tolerant jurisdictions.
What does it mean for DeFi users and developers?
For those operating in decentralized finance, the conviction of Roman Storm is a warning. Developers must now consider legal risks and international implications even just in doing open source. Those who use tools like Tornado Cash might find themselves under scrutiny if the US regulatory environment tightens further.
It is also emblematic that, for now, the judgment only concerns the transmission of money without authorization and not the actual money laundering. Therefore, the question remains open: what legal protections are due to those who create code, and where does their responsibility end?
Future impact and what to expect
The sentence on Tornado Cash marks a watershed for the entire DeFi and could soon be followed by new cases. The regulatory authorities are increasingly vigilant, especially on alleged ties with international crime and sanctioned entities.
Everything can change in the coming weeks, with the publication of the verdict and its consequences on regulation and developers’ responsibilities. Follow the official channels and the DeFi community on social media for updates and to understand how to protect privacy, tools, and future innovations.