The Tornado Cash trial, centered around co-founder Roman Storm, carried 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, provided extensive insights into the high-stakes nature of the trial. During an interview, Tuminelli outlined the three charges against Storm, delving deeply into the charge of conspiracy to operate an unlicensed money transmitting business.

Tuminelli, an expert on 18 U.S. Code § 1960 (the federal law prohibiting unlicensed money transmitting businesses), argued that Storm had not violated this statute in creating and operating Tornado Cash, an Ethereum-based crypto mixing service. The discussion also covered legislative efforts like the CLARITY Act and the Blockchain Regulatory Certainty Act (BRCA), both of which contain language designed to protect developers of non-controlling (noncustodial) crypto technology. These bills stipulate that such developers do not require a money transmitting license and should not be subject to existing money transmission laws.

Furthermore, Tuminelli highlighted concerns about the Department of Justice’s (DoJ) shift away from 2019 FinCEN guidance, which she believes threatens innovation in the crypto space and could lead to further prosecutions of developers like Storm. This is despite a memo from U.S. Deputy Attorney General Todd Blanche, stating that the DoJ would cease targeting crypto entities, including mixing and tumbling services, for the acts of their end-users. Tuminelli shared her perspectives on the trial's progress and the defense's strategy, also mentioning the amicus briefs submitted by the DeFi Education Fund for the Tornado Cash and Samourai Wallet cases, though the former was rejected by the court.

As the trial concluded 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 charges, which were conspiracy to commit money laundering and conspiracy to violate sanctions. This guilty verdict, reached after three and a half days of deliberation following a trial that commenced in mid-July, means Storm now faces up to five years in prison.

Following the verdict, the prosecution motioned to remand Storm into custody, asserting he was a flight risk. However, Judge Failla rejected this motion. The defense, represented by Ms. Klein, countered the prosecution's claim by citing Storm's strong ties to the United States, including his home in Washington state secured by a $2 million bail bond, his daughter and girlfriend residing in the U.S., his parents being green card holders, and the substantial support from the U.S.-based crypto community. Judge Failla was unconvinced by the prosecution's argument that Storm had increased incentive to flee post-conviction, stating that the