The Tornado Cash trial has reached a critical juncture, carrying 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 of the case involving Tornado Cash co-founder Roman Storm. Her expertise centers on 18 U.S. Code § 1960, the U.S. federal law prohibiting the operation of an unlicensed money transmitting business, and she argued that Storm's creation and operation of Tornado Cash, an Ethereum-based crypto mixing service, did not violate this statute.

Tuminelli detailed the three charges levied against Roman Storm, with particular emphasis on the conspiracy to operate an unlicensed money transmitting business. She also highlighted legislative efforts such as the CLARITY Act and the Blockchain Regulatory Certainty Act (BRCA), both containing language designed to protect developers of non-controlling (noncustodial) crypto technology. These bills explicitly state that such developers do not require a money transmitting license and should not be subject to existing money transmission laws. Furthermore, Tuminelli expressed concern over the Department of Justice’s (DoJ) shift away from 2019 FinCEN guidance, suggesting it threatens innovation in the crypto space and could lead to continued prosecution of developers despite a memo from U.S. Deputy Attorney General Todd Blanche indicating the DoJ would cease targeting virtual currency mixing services for the acts of their end users.

The Tornado Cash trial concluded with a guilty verdict for Roman Storm on the second count of his indictment: conspiracy to operate an unlicensed money transmitting business. The jury reached this decision after three and a half days of deliberation following a trial that began in mid-July. Storm now faces up to five years in prison as a result of this conviction. Notably, the jury did not reach a unanimous verdict on the other two counts, which included conspiracy to commit money laundering and conspiracy to violate sanctions.

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, led by Ms. Klein, successfully argued against the government's claim, pointing out that Storm had little incentive to flee. Key arguments included his Washington state home being tied to a $2 million bail bond, his partial custody of his daughter and his girlfriend residing in the U.S., his parents being green card holders, and the substantial support from the U.S.-based crypto community, which is expected to continue during his appeal. Judge Failla acknowledged that the