{"id":14795,"date":"2025-08-07T09:01:01","date_gmt":"2025-08-07T07:01:01","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=14795"},"modified":"2025-08-07T09:01:01","modified_gmt":"2025-08-07T07:01:01","slug":"roman-storm-convicted-on-one-of-three-charges","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/08\/07\/roman-storm-convicted-on-one-of-three-charges\/","title":{"rendered":"Roman Storm Convicted on One of Three Charges"},"content":{"rendered":"

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Today in the Southern District of New York (SDNY), Tornado Cash co-originator Roman Storm was deemed guilty on the second charge of his indictment, conspiracy to operate an unauthorized money transmission business.<\/p>\n

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The Tornado Cash trial has reached its conclusion.<\/p>\n

Roman Storm has been convicted of the conspiracy to run an unlicensed MTB charge.<\/p>\n

Here are my reflections on the outcome, the government\u2019s (dismissed) motion to detain Storm, and what lies ahead. pic.twitter.com\/T41TtEL9Kh<\/a><\/p>\n

\u2014 Frank Corva (@frankcorva) August 6, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

The jury did not reach a unanimous decision on the additional two counts \u2014 conspiracy to engage in money laundering and conspiracy to breach sanctions.<\/p>\n

The jury arrived at this guilty ruling after three and a half days of discussion and after a trial that commenced in the middle of last month<\/a>.<\/p>\n

As a result of the guilty finding on the money transmission count, Storm now faces a potential sentence of up to five years in prison.<\/p>\n

Judge Failla Denies Motion To Detain Storm<\/h2>\n

In the aftermath of the verdict announcement, the prosecution submitted a motion to detain Storm, arguing that he posed a flight risk.<\/p>\n

The defense\u2019s Ms. Klein countered the government\u2019s claim, arguing that Storm had minimal reason to escape the United States, especially given that his residence in Washington state is linked to a $2 million bail bond; that his daughter, of whom he has partial custody, and girlfriend reside in the U.S., and his parents are green card holders; and that many within the crypto community supporting Storm are based in the U.S. and will hopefully continue their support as he appeals the ruling.<\/p>\n

The prosecution contended that since Storm has been found guilty of a crime, he has greater motivation to flee, but the judge was not persuaded.<\/p>\n

She asserted that the \u201cstability of the verdict is still at stake\u201d (likely alluding to the possibility of Storm appealing the ruling), before stating that his \u201cincentives have shifted significantly\u201d and subsequently dismissing the prosecution\u2019s request to remand him.<\/p>\n

U.S. Attorney for the SDNY Speaks Out<\/h2>\n

Shortly following the verdict announcement, U.S. Attorney for the SDNY (and former U.S. Securities and Exchange Commission chair) Jay Clayton released a statement<\/a> regarding the verdict.<\/p>\n

\u201cRoman Storm and Tornado Cash facilitated a service for North Korean hackers and various criminals to transfer and conceal over $1 billion of illicit funds,\u201d stated Clayton.<\/p>\n

\u201cThe speed, effectiveness, and capability of stablecoins and other digital assets offer tremendous potential, but that potential cannot serve as an excuse for criminal behavior. Offenders who utilize new technologies to perpetrate age-old crimes, such as concealing illicit funds, diminish public trust and unfairly cast a shadow over the numerous innovators who operate legally,\u201d he added.<\/p>\n

\u201cThis Office and our allied agencies are dedicated to holding accountable those who exploit emerging technologies to engage in criminal activities.\u201d<\/p>\n

Clayton did not acknowledge the memo released by U.S. Deputy Attorney General Todd Blanche<\/a>, in which Blanche indicated that the U.S. Department of Justice would \u201ccease to engage in regulation by prosecution\u201d in the crypto domain and would no longer target virtual currency mixing services for the actions of their end users.<\/p>\n

He also omitted mentioning that the vast majority of funds transacted by Tornado Cash users were not established to have been acquired illegally<\/a>.<\/p>\n<\/div>\n