The high-stakes implications of the Tornado Cash trial for developers of noncustodial Bitcoin and crypto technology, as well as privacy-preserving software, have been a central point of discussion. Amanda Tuminelli, executive director and chief legal officer for the DeFi Education Fund, highlighted these concerns in an interview on Bitcoin Politics, coinciding with the trial's conclusion.

During the interview, Tuminelli provided an overview of the three charges against Tornado Cash co-founder Roman Storm, with a deep dive into the conspiracy to operate an unlicensed money transmitting business charge. As an expert on 18 U.S. Code § 1960, the federal law prohibiting unlicensed money transmitting businesses, Tuminelli argued that Storm had not violated this statute in creating and operating Tornado Cash, an Ethereum-based crypto mixing service.

Tuminelli also discussed legislative efforts like the CLARITY Act and the Blockchain Regulatory Certainty Act (BRCA), both containing language protecting 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 addressed the Department of Justice’s (DoJ) shift away from 2019 FinCEN guidance, warning it threatens crypto innovation and could lead to more charges against developers like Storm, despite U.S. Deputy Attorney General Todd Blanche’s April memo stating the DoJ would stop targeting virtual currency mixing services for end-user acts.

The Tornado Cash trial concluded in the Southern District of New York (SDNY) with Roman Storm found guilty on one count: conspiracy to operate an unlicensed money transmitting business. The jury did not reach a unanimous verdict on the other two charges—conspiracy to commit money laundering and conspiracy to violate sanctions. This guilty verdict came after three and a half days of deliberation following a trial that began in mid-July, and it now exposes Storm to a potential prison sentence of up to five years.

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 claim, citing Storm’s $2 million bail bond tied to his Washington state home, his partial custody of his daughter, his girlfriend’s U.S. residency, his parents’ green card status, and the substantial U.S.-based crypto community support. Judge Failla noted the “stability of the verdict is still in play,” likely referring to an appeal, and that Storm’s “incentives have shifted tremendously,” before denying the remand.

Shortly after the verdict, U.S. Attorney for the SDNY, Jay Clayton, issued a statement. Clayton asserted, “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 excuse criminality, and that those exploiting new technology for old crimes undermine public trust. Notably, Clayton’s statement omitted any mention of Deputy Attorney General Todd Blanche’s memo regarding the DoJ’s intent to cease “regulation by prosecution” in crypto, nor did he acknowledge that the vast majority of funds moved through Tornado Cash users were not proven to be illicitly obtained.