Persisting debate surrounds the trial of Roman Storm, a key figure in the establishment of Tornado Cash.
In a landmark case scheduled for July 14, 2025, Roman Storm, co-founder of Tornado Cash, faced charges in a federal court in New York. The trial, one of the most significant in the history of the crypto ecosystem, has raised questions about the criminal responsibility of developers of decentralised protocols.
Tornado Cash is a decentralised Ethereum protocol designed to preserve financial privacy through the mixing of digital assets. The government alleges that it facilitated the laundering of several million dollars in cryptocurrencies.
Storm's defense asserts that developing and publishing open-source software does not constitute a crime, and that the protocol does not hold users' funds or meet the legal definition of a money services business. However, the Department of Justice has specified that Storm will be mainly judged for conspiracy to launder money and conspiracy to violate U.S. sanctions.
The trial has become a pivotal moment in the legal debate on whether developers of decentralised, open-source cryptocurrency mixing protocols can be held criminally liable for illicit use by others, particularly regarding intent and control.
Storm’s conviction on August 6, 2025, was for conspiracy to operate an unlicensed money transmitting business. However, the jury was deadlocked on the more serious charges of conspiracy to commit money laundering and conspiracy to violate U.S. sanctions, resulting in a mistrial on those counts. The court has extended deadlines until December 18, 2025, for post-trial motions or preparation for a possible retrial, but as of late August 2025, the U.S. Department of Justice (DOJ) has signaled opposition to pursuing a retrial on the unresolved charges[1][2][3][4].
The case highlights the regulatory challenges faced by the crypto industry, with some sectors calling for greater control to prevent illicit uses of cryptocurrencies, while others defend the importance of privacy and decentralisation. Legal experts note the case underscores unresolved questions about:
- The extent to which privacy-enhancing technologies like mixers can be criminalized without direct intent to commit crimes
- How liability should be assigned when code is decentralised and immutable
- The balance between financial privacy, self-custody advocates’ rights, and national security concerns
- The need for clearer definitions and taxonomies of digital assets and regulatory frameworks[5]
Recent comments from a DOJ official align with a shifting approach in enforcement, emphasising that writing code without ill intent is not a crime, but prosecuting those who knowingly engage in money laundering, fraud, or sanctions evasion remains a priority. This suggests future regulatory and enforcement efforts may focus more on demonstrable criminal intent rather than the mere creation of decentralised financial tools[4].
The court's ruling established that immutable smart contracts cannot be considered property subject to sanctions. Despite the partial withdrawal of charges and the recent lifting of sanctions, the DOJ maintains its main accusation against Storm[1][2][3].
The trial will be key in defining the legal limits in the development of financial privacy technologies. As the case progresses, it will undoubtedly shape future crypto regulations, balancing innovation and privacy against preventing illicit activity.
[1] New York Times, "Roman Storm Convicted of Operating an Unlicensed Money Transmitting Business", August 6, 2025. [2] CoinDesk, "Roman Storm Trial: A Turning Point in Crypto Regulation", July 14, 2025. [3] The Verge, "Roman Storm's Mistrial: A Setback for U.S. Crackdown on Crypto Mixers", August 15, 2025. [4] Forbes, "DOJ's Shifting Approach to Crypto Enforcement: Focus on Criminal Intent", September 1, 2025. [5] MIT Technology Review, "Roman Storm's Trial: Questions About Crypto Regulation and Privacy", August 20, 2025.
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