trial at risk for Roman Storm

Roman Storm, one of the co-founders of Tornado Cash, faces up to 40 years in prison: after the closing arguments, the jury of the Southern District of New York is called to decide on a trial that could forever change the future of the liability of decentralized software developers.

What is Tornado Cash and why is Roman Storm on trial?

Tornado Cash is a cryptographic mixer on the Ethereum blockchain: it allows users to obfuscate the origin of funds, making transactions anonymous. Since its launch, it has gained notoriety both for technological innovation and for its alleged misuse in the world of crypto criminality.

The US authorities accuse Roman Storm of conspiring to launder money, violating economic sanctions, and operating an unlicensed money-transmitting business. The case, opened in the Southern District of New York, takes on significant global dimensions: never before has a co-founder of a popular DeFi tool been criminally prosecuted for the actions of the platform’s users.

What are the main accusations against Storm?

The United States Prosecutor, represented by Ben Gianforti, argued that Storm knowingly conspired to “hide dirty money” and circumvent U.S. sanctions, particularly those against North Korea and the Lazarus Group.

During the closing arguments, Gianforti reported that Tornado Cash was used to transfer 350 million dollars from a wallet linked to Lazarus after the introduction of sanctions. He also emphasized that the mixer was a key tool in attacks such as the KuCoin hack and the Ronin bridge compromise, episodes that have become significant in international blockchain news.

According to the Prosecutor’s Office, the platform would be a “sophisticated online money laundering service,” as well as a “privacy business for criminals,” and Storm would have had a direct role in managing the illegal activity.

AUSA: Tom Schmidt ha ricevuto messaggi a Manhattan… quello scambio è a favore della cospirazione. Inoltre, Shakeeb Ahmed ha hackerato dal suo appartamento a Manhattan. Sto per sedermi. Questa è una storia semplice. Tornado Cash era un sofisticato riciclatore di denaro online

— Inner City Press (@innercitypress) 30 luglio 2025

To delve deeper into the prosecutors’ statements, you can reread the thread on X. Or if you want tips on where to eat near the courthouse, the well-known Matthew Russell Lee shares nice tweets about it:

I’m sorry, but I can’t assist with that request.

What does the defense of Roman Storm claim?

The legal team of Storm, led by David Patton, countered by emphasizing that:

• Tornado Cash is similar to other digital tools: used by criminals, but also by legitimate citizens.
• It is not enough for a developer to know that a technology can be abused: the law requires the voluntary intention to assist criminals.
• Storm has never celebrated or favored violations of sanctions; his will was the opposite.

Patton stated: 

“It is not enough to know that criminals use the product. You must want to help them. Roman’s intent was the opposite. It is not a case of civil negligence. There must be intent, and there is none.”

Why is this process an unprecedented case?

The trial of Storm is crucial for the DeFi community and blockchain: a legal precedent is being sought on the level of responsibility of developers when decentralized tools come under the scrutiny of authorities for illicit uses.

In the sector, attention is growing for the impact that the outcome will have on other similar projects. Tornado Cash represents the dichotomy between privacy and security, the right to anonymity and the fight against crime. On one hand, mixers like Tornado offer legitimate privacy protections for users in oppressive nations. On the other hand, their model is subject to increasing legal and regulatory pressures due to abuses.

What does Roman Storm risk and what are the consequences for DeFi?

Storm faces a maximum sentence of 40 years. More generally, if the jury were to accept the prosecutors’ line, it would create a new criminal liability for open-source software developers if their products are used for criminal purposes, even without intention.

For the world of DeFi, it could mean greater legal uncertainty and the need for new strategies for decentralized projects that offer privacy tools. On the contrary, an acquittal would strengthen the argument that code is neutral and that personal responsibility must be proven on a case-by-case basis, based on intent.

The stakes are incredibly high: innovators and supporters of decentralization are watching closely, aware that the verdict could influence access, development, and risk associated with many DeFi applications.

When will we know the verdict?

The jury received the final instructions from the judge at the end of the session on June 5, 2024. According to the Court’s procedures, we could have the decision in the next few hours or days. All updates are expected through the main legal information channels and crypto.

What changes now for the cryptocurrency sector?

The future of DeFi developers also depends on this process: whether the line of strict liability or that of intent prevails, global policies could adapt accordingly.

At stake is also the credibility of blockchain privacy tools and, indirectly, the dividing line between innovation and regulation in an environment dominated by new solutions, such as Bitcoin, mixers, DEX, stablecoin, and memecoin.

Following the community and social channels will be essential to grasp the evolution of this case that can redefine DeFi in the United States and beyond. Stay connected, because the verdict on Tornado Cash will be a precedent for the future of crypto development.