The high-stakes Tornado Cash trial, closely watched by the cryptocurrency community for its implications on developers of noncustodial Bitcoin and crypto technology and privacy-preserving software, has reached its conclusion with significant outcomes. Amanda Tuminelli, executive director and chief legal officer for the DeFi Education Fund, provided a detailed perspective on the legal intricacies and potential ramifications throughout the proceedings.

Prior to the verdict, Tuminelli, an expert on 18 U.S. Code § 1960 — the federal law prohibiting unlicensed money transmitting businesses — offered an in-depth analysis of the charges against Tornado Cash co-founder Roman Storm. She specifically delved into the conspiracy to operate an unlicensed money transmitting business charge, asserting that Storm had not violated this statute in creating and operating Tornado Cash, an Ethereum-based crypto mixing service. Tuminelli highlighted legislative efforts such as the CLARITY Act and the Blockchain Regulatory Certainty Act (BRCA), which include language designed to protect developers of "non-controlling" (noncustodial) crypto technology from requiring money transmitting licenses or being subject to existing money transmission laws. She also expressed concerns regarding the Department of Justice's (DoJ) deviation from 2019 FinCEN guidance, viewing it as a threat to innovation in the crypto space and a potential precursor to further charges against developers like Storm, despite an April memo from U.S. Deputy Attorney General Todd Blanche stating the DoJ would cease targeting crypto entities, including mixing services, for end-user actions.

On August 6, 2025, in the Southern District of New York (SDNY), the Tornado Cash trial concluded with Roman Storm found guilty on the second count of his indictment: conspiracy to operate an unlicensed money transmitting business. The jury, after three and a half days of deliberation following a trial that began in mid-July, did not reach a unanimous verdict on the other two counts — conspiracy to commit money laundering and conspiracy to violate sanctions. As a consequence of the guilty verdict on the money transmission charge, Storm now faces a potential prison sentence of up to five years.

Following the verdict, the prosecution motioned to remand Storm into custody, alleging he was a flight risk. However, Judge Failla rejected this motion, with the defense successfully arguing that Storm had little incentive to flee the United States. Factors cited included his $2 million bail bond tied to his Washington state home, his daughter and girlfriend residing in the U.S., his parents being green card holders, and the substantial U.S.-based crypto community supporting him. Judge Failla noted the "stability of the verdict is still in play," indicating a likely appeal, and acknowledged that Storm's "incentives have shifted tremendously" before denying the prosecution's request.

Shortly after the verdict, U.S. Attorney for the SDNY, 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 promise of stablecoins and digital assets "cannot be an excuse for criminality," pledging commitment to holding accountable those who exploit emerging technologies for "age old crimes." Notably, Clayton's statement made no mention of the memo by U.S. Deputy Attorney General Todd Blanche, which outlined the DoJ's intent to "stop participating in regulation by prosecution" in the crypto space and to no longer target virtual currency mixing services for the actions of their end users. Furthermore, Clayton did not acknowledge that the vast majority of funds moved through Tornado Cash users were not proven to have been obtained illicitly.