The Tornado Cash trial has drawn significant attention due to its high-stakes 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, an organization that includes Bitcoin within its definition of DeFi, has closely followed the proceedings. During an interview for the ‘Bitcoin Politics’ episode, released to coincide with the trial's final week, Tuminelli offered a comprehensive overview of the charges against Tornado Cash co-founder Roman Storm.

A core focus of the discussion was 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 the operation of an unlicensed money transmitting business—argued that Storm had not violated this statute in his creation and operation of Tornado Cash, a crypto mixing service built on Ethereum. She also highlighted the relevance of proposed legislation, such as the CLARITY Act and the Blockchain Regulatory Certainty Act (BRCA). Both bills contain language designed to protect developers of “non-controlling” (noncustodial) crypto technology, stipulating that such developers and purveyors should not require a money transmitting license nor be subject to existing money transmission laws.

Tuminelli further addressed concerns regarding the Department of Justice’s (DoJ) shift away from 2019 FinCEN guidance, warning that this change could stifle innovation within the crypto space and lead to continued prosecution of developers like Storm. This concern persists despite an April memo from U.S. Deputy Attorney General Todd Blanche, which stated that the DoJ would cease targeting crypto entities, including mixing and tumbling services, for the acts of their end users. Tuminelli shared insights into the trial’s progression and the defense’s strategy, also mentioning the amicus briefs submitted by the DeFi Education Fund for both the Tornado Cash and Samourai Wallet cases, though the former’s brief was rejected by the court.

The Tornado Cash trial concluded in the Southern District of New York (SDNY) with a guilty verdict against Roman Storm 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 counts, conspiracy to commit money laundering and conspiracy to violate sanctions. The guilty verdict was reached after three and a half days of deliberation following a trial that began in mid-July. As a result, 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, represented by Ms. Klein, successfully argued that Storm had little incentive to flee the United States, citing his $2 million bail bond tied to his Washington state home, his partial custody of a daughter and girlfriend based 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 the stability of the verdict was still “in play” due to the likelihood of an appeal and noted that Storm’s incentives had