Mixed Verdict in High-Profile Crypto Case

A New York jury reached a partial verdict Wednesday in the closely-watched case against Tornado Cash co-founder Roman Storm, convicting him on one count while deadlocking on two other charges. The developer was found guilty of conspiring to operate an unlicensed money transmitting business, which carries a maximum five-year prison sentence.

Jury Deadlock on More Serious Charges

After four days of deliberation, jurors failed to reach consensus on charges of money laundering conspiracy and violating North Korea sanctions. Court observers noted the split verdict reflects the complex nature of prosecuting decentralized finance protocols. Judge Katherine Failla had earlier instructed the deadlocked jury to continue deliberations toward unanimity.

Prosecution's Case Focused on Protocol Control

Government witnesses—including FBI and IRS agents—testified that Storm maintained technical capability to alter Tornado Cash's smart contracts to prevent criminal use. The defense countered with expert testimony from Ethereum core developer Preston Van Loon, arguing the protocol's decentralized nature limited Storm's control.

Industry Backing for Defense

Storm's legal team received significant support from the crypto community, with over $3 million raised for his defense. Major contributors included Ethereum co-founder Vitalik Buterin and Paradigm's Matt Huang. The case has been viewed as a bellwether for developer liability in decentralized systems.

Sentencing Looms as Precedents Weigh

With sentencing scheduled in coming weeks, Judge Failla acknowledged considering other high-profile crypto cases during proceedings. The outcome follows recent convictions of FTX's Sam Bankman-Fried and OneCoin's Karl Greenwood in the same district. Storm maintains his innocence and plans to appeal the conviction.

Broader Implications for DeFi

The partial verdict leaves unresolved questions about legal responsibility for decentralized protocol developers. As authorities increasingly target crypto privacy tools, the case's outcome may influence how future projects structure their governance and compliance measures.