The Tornado Cash trial, involving co-founder Roman Storm, has concluded with significant implications for developers of noncustodial Bitcoin and crypto technology, as well as privacy-preserving software. Amanda Tuminelli, executive director and chief legal officer for the DeFi Education Fund (which includes Bitcoin in her view), has closely followed the high-stakes proceedings, providing insight into the legal landscape surrounding crypto innovation. The trial, which concluded in August 2025, focused on several charges, most notably conspiracy to operate an unlicensed money transmitting business.

Tuminelli, an expert on 18 U.S. Code § 1960, the U.S. federal law prohibiting unlicensed money transmission, argued that Storm's creation and operation of Tornado Cash, an Ethereum-based crypto mixing service, did not violate this statute. She highlighted the intent of legislative efforts like the CLARITY Act and the Blockchain Regulatory Certainty Act (BRCA), which include provisions to protect developers of “non-controlling” (noncustodial) crypto technology. These bills stipulate that such developers and purveyors should not require a money transmitting license nor be subject to existing money transmission laws. Furthermore, Tuminelli pointed out that the Department of Justice’s (DoJ) shift away from 2019 FinCEN guidance poses a threat to innovation in the crypto space, potentially leading to continued prosecution of developers like Storm, despite Deputy Attorney General Todd Blanche's April memo stating the DoJ would cease targeting crypto entities, including mixing and tumbling services, for their end users' actions. The DeFi Education Fund actively supported the defense, submitting amicus briefs for both the Tornado Cash and Samourai Wallet cases, though the Tornado Cash brief was rejected by the court.

Ultimately, on August 6, 2025, in the Southern District of New York (SDNY), Roman Storm was found guilty on the second count of his indictment: conspiracy to operate an unlicensed money transmitting business. The jury did not reach a unanimous verdict on the other two counts, conspiracy to commit money laundering and conspiracy to violate sanctions. This guilty verdict, reached after three and a half days of deliberation and a trial that began in mid-July 2025, means Storm now faces up to five years in prison.

Following the verdict, the prosecution's motion to remand Storm into custody, citing him as a flight risk, was rejected by Judge Failla. The defense, led by Ms. Klein, successfully argued against this, noting Storm's significant ties to the United States, including his Washington state home secured by a $2 million bail bond, his daughter (of whom he has partial custody) and girlfriend residing in the U.S., his green card holder parents, and the strong support from the U.S.-based crypto community. Judge Failla, unconvinced by the prosecution's claims that Storm had increased incentive to flee post-conviction, emphasized that “the stability of the verdict is still in play,” likely referencing the anticipated appeal, and acknowledged that his “incentives have shifted tremendously” before denying the motion.

Shortly after the verdict, U.S. Attorney for the SDNY (and former U.S. Securities and Exchange Commission chair) Jay Clayton issued a statement. Clayton asserted that “Roman Storm and Tornado Cash provided a service for North Korean hackers and other criminals to move and hide more than $1 billion of dirty money.” He emphasized that the speed, efficiency, and functionality of stablecoins and other digital assets offer great promise, but that promise should not excuse criminality, and that those who exploit new technology for “age old crimes” undermine public trust and cast a shadow on lawful innovators. Clayton concluded by stating his office's commitment to holding accountable those who misuse emerging technologies. Notably, Clayton's statement did not mention Deputy Attorney General Todd Blanche's memo about the DoJ's shift away from “regulation by prosecution” in crypto, nor did it acknowledge the lack of proof that the vast majority of funds moved through Tornado Cash users were illicitly obtained. This trial sets a significant precedent for the future of decentralized finance and privacy tools within the United States.