The Tornado Cash trial has been a focal point for the cryptocurrency and privacy software communities, with its implications extending to developers of noncustodial Bitcoin and crypto technology. Amanda Tuminelli, executive director and chief legal officer for the DeFi Education Fund, an organization that considers Bitcoin part of 'DeFi,' closely monitored the high-stakes proceedings, offering crucial insights into the legal landscape before the trial's conclusion. She detailed the three charges against Tornado Cash co-founder Roman Storm, with a deep dive into the charge of 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 transmitting businesses – argued that Storm had not violated this statute in his role in creating and operating Tornado Cash, an Ethereum-based crypto mixing service. She highlighted the existence of legislative efforts like the CLARITY Act and the Blockchain Regulatory Certainty Act (BRCA), which aim to protect developers of “non-controlling” (noncustodial) crypto technology by stipulating they 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) perceived shift away from 2019 FinCEN guidance, warning that such a change threatens innovation in the crypto space. She suggested this could lead to further prosecutions of developers like Storm, despite an April memo from U.S. Deputy Attorney General Todd Blanche indicating the DoJ would cease targeting crypto entities, including mixing and tumbling services, for the actions of their end users. Tuminelli also shared her perspective on the trial’s progression and the defense's strategies, and discussed amicus briefs submitted by the DeFi Education Fund for the Tornado Cash and Samourai Wallet cases, though the former was rejected by the court.

In a significant development, the Tornado Cash trial concluded in the Southern District of New York (SDNY) 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. The defense, led by Ms. Klein, countered the government’s assertion by highlighting Storm’s strong ties to the U.S., 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 significant U.S.-based crypto community that supports him. Judge Failla acknowledged that Storm’s incentives had