Mixed Verdict in Tornado Cash Developer Case: Guilty on Unlicensed Money Transmission, Hung on Laundering

A Manhattan federal jury delivered a split verdict in the case against Tornado Cash developer Roman Storm. The jury found Storm guilty of conspiring to operate an unlicensed money transmitting business but acquitted him of sanctions evasion under IEEPA. The panel deadlocked on charges of money laundering conspiracy.

Defense attorney Amanda Tuminelli of the DeFi Education Fund criticized the prosecution's approach, calling it a dangerous precedent to hold software developers liable for third-party use of their code. She urged the Department of Justice against retrying the unresolved charges, suggesting the incoming administration should reconsider pursuing this case.

Prosecutors sought immediate detention following the verdict, citing Storm's access to significant cryptocurrency funds and alleged flight risk. Defense countered that Storm had complied with all bond conditions since his arrest.