Tornado Cash Co-Founder Found Guilty of Operating Unlicensed Money Transmitter

A federal jury in Manhattan has found Roman Storm, co-founder of crypto mixing service Tornado Cash, guilty of operating an unlicensed money transmission business.

However, jurors were unable to reach a verdict on additional charges related to money laundering and sanctions violations, resulting in a partial verdict after days of deliberation.

The verdict was delivered in the U.S. District Court for the Southern District of New York, with Judge Katherine Polk Failla presiding. Calling it a “hard-fought case,” the judge acknowledged the jury’s deadlock on the two remaining charges.

Storm was originally indicted in 2023 on allegations that he conspired to launder money and violated international sanctions by operating a platform that prosecutors say enabled over $1 billion in illicit transactions. The U.S. government claims Tornado Cash was used to launder millions on behalf of Lazarus Group, the North Korean state-backed hacking organization currently under U.S. sanctions.

Prosecutors argued that Storm was fully aware of the illegal use of the platform and knowingly profited from it. During closing arguments, they stated that Storm not only recognized Tornado Cash’s role in laundering funds, but also made millions of dollars in the process.

Defense attorneys countered that Storm did not intend for the platform to be used for criminal activity. When he learned that Lazarus Group had exploited Tornado Cash, his reaction was far from celebratory, according to his lawyer, who cited “F-bombs” and frustration.

Storm has pleaded not guilty to all charges and still faces the possibility of a lengthy prison sentence. The unresolved charges could lead to a retrial, pending the government’s next steps.