Tornado Cash developer Roman Storm has been found guilty of operating an unlicensed money transmitting business.

This follows four days of deliberations, in which the jurors in the case were unable to reach a verdict on some charges, resulting in a deadlock.

A Divisive Case with Industry-Wide Implications

Storm had been indicted on three charges: conspiracy to commit money laundering, conspiracy to operate an unlicensed money-transmitting business, and conspiracy to violate the International Emergency Economic Powers Act (IEEPA).

However, according to courtroom reporting by Inner City Press, after extended deliberations, jurors found Storm guilty solely on Count 2, with Counts 1 and 3 resulting in non-unanimous decisions.

Following the verdict, the government attorneys immediately moved to remand Storm to prison, claiming that he posed a significant flight risk. They cited his Russian origins, access to millions in cryptocurrency, including Ethereum (ETH) holdings, links to co-founder Roman Semenov’s $10.4 million wallet, and past messages discussing “options for asylum” and criticizing U.S. immigration verification.

Nonetheless, Storm’s defense team, led by lawyer Brian Klein, successfully fought to keep him out of custody pending sentencing. Ultimately, Judge Katherine Polk Failla concluded that the developer was not a flight risk, stating, “There is a lot of fighting left in this case.”

A sentencing date has yet to be scheduled, and it remains uncertain whether the authorities will seek to retry Storm on the remaining allegations.

The 36-year-old was arrested in 2023 and charged with assisting cybercriminals in laundering more than $1 billion through Tornado Cash, a crypto mixer he helped develop. Among the bad actors alleged to have used the tool was the Lazarus Group, a hacking unit linked to the North Korean government.

In their closing arguments earlier this week, prosecutors argued that Storm was fully aware of the illicit use of the service and personally profited from its operation. They claimed he earned millions while knowingly enabling transactions tied to hostile foreign actors.

A Murky Future for Crypto Developers

While limited to one count, the conviction raised eyebrows among the crypto privacy and development communities. Acting U.S. Attorney and former SEC Chair Jay Clayton praised the prosecution team in a statement, declaring:

“This office and our partner agencies are committed to holding accountable those who exploit emerging technologies to commit crime.”

However, privacy advocates and legal experts expressed deep concern. Coin Center, a leading crypto policy think tank, outlined critical takeaways, arguing the conviction hinged on a contested legal interpretation of “money transmission” that disregarded FinCEN’s own guidance stating developers without control of user funds aren’t transmitters.

Amanda Tuminelli, executive director and chief legal officer at the DeFi Education Fund, said the organization will continue to support Storm as he prepares to appeal his conviction. She described the charge as fundamentally flawed and argued it should never have gone to trial.

The verdict follows a separate legal development involving the creators of Samourai Wallet, a Bitcoin-based privacy tool. Just one week earlier, co-founders Keonne Rodriguez and William Lonergan Hill admitted guilt to conspiracy charges related to operating an unlicensed money transmitting business after reaching an agreement with authorities.