Roman Storm, co-founder of the cryptocurrency mixing service Tornado Cash, has been found guilty in the Southern District of New York (SDNY) on one count: conspiracy to operate an unlicensed money transmitting business. The verdict, delivered on August 6, 2025, concluded a trial that commenced in mid-July and followed three and a half days of jury deliberation. While the jury reached a unanimous decision on this charge, they did not come to a verdict on the other two counts Storm faced – conspiracy to commit money laundering and conspiracy to violate sanctions. As a consequence of this conviction, Storm could face up to five years in prison.

Following the issuance of the verdict, the prosecution immediately moved to remand Storm into custody, arguing he posed a significant flight risk. However, Judge Failla firmly rejected this motion. Storm’s defense counsel, Ms. Klein, countered the prosecution's claims by highlighting Storm's strong ties to the United States. She cited a $2 million bail bond secured by his Washington state home, his partial custody of a daughter and a girlfriend residing in the U.S., and his parents' status as green card holders. Furthermore, she emphasized that much of the crypto community that has supported Storm throughout his legal battles is based in the U.S. and is expected to continue their support through an appeal.

Despite the prosecution's argument that Storm’s conviction provided increased incentive to flee, Judge Failla remained unconvinced. She stated that the “stability of the verdict is still in play,” suggesting the strong likelihood of an appeal, and acknowledged that Storm’s “incentives have shifted tremendously,” but ultimately denied the motion to remand him. This decision allows Storm to remain out of custody as he prepares for the next steps in his legal process.

U.S. Attorney for the SDNY, Jay Clayton, a former U.S. Securities and Exchange Commission chair, issued a statement shortly after the verdict. Clayton asserted that “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 acknowledged the potential of stablecoins and digital assets, but firmly stated that such promise “cannot be an excuse for criminality.” Clayton reiterated the commitment of his office and partner agencies to hold accountable those who exploit emerging technologies for criminal activities, emphasizing that such actions “undermine the public trust, and unfairly cast a shadow on the many innovators who operate lawfully.”

Notably, Clayton's statement omitted any reference to a memo issued by U.S. Deputy Attorney General Todd Blanche. In this memo, Blanche had stated that the U.S. Department of Justice would “stop participating in regulation by prosecution” in the crypto space and would no longer target virtual currency mixing services solely for the actions of their end users. Additionally, Clayton's remarks did not acknowledge that the vast majority of funds processed through Tornado Cash users were not proven to have been obtained illicitly, a point that has been a significant aspect of the broader discussion surrounding the service.