Roman Storm Tornado Cash Trial: Partial Verdict and DOJ's Next Steps

The US Department of Justice faces a critical decision following the partial verdict in the Roman Storm case, as legal experts warn of far-reaching implications for the decentralized finance industry.

Storm Convicted on One Count, Jury Deadlocks on Others

Roman Storm, the Tornado Cash developer, was found guilty on one felony count for conspiracy to operate an unlicensed money transmitting business. However, the jury could not reach unanimous decisions on conspiracy to commit money laundering and conspiracy to violate North Korea sanctions charges.

According to Jake Chervinsky, chief legal officer at Variant Fund, the Department of Justice will decide in the coming days whether to pursue a retrial on the deadlocked charges.

Legal Implications for Decentralized Finance

The partial verdict carries significant consequences for the broader DeFi ecosystem. Attorney Aaron Brogan highlighted concerns that the broad application of federal money transmitter law could affect many decentralized finance protocols.

"The problem with this broad application of federal money transmitter law is that many in DeFi worry they could apply as strongly to them as to Tornado Cash," Brogan explained. While the government may not pursue charges against all DeFi platforms, the legal exposure provides prosecutors with substantial leverage in future negotiations.

Industry Reactions to the Verdict

Legal experts have expressed mixed reactions to the partial verdict. Chervinsky described the outcome as "a sad day for DeFi," emphasizing that section 1960 of the US Code poses an existential threat to decentralized finance applications.

Attorney Zack Shapiro acknowledged the "depressing conclusion" while noting relief that potential prison sentences for money laundering charges remain off the table for now. Shapiro suggested the government might not retry the deadlocked counts given current political dynamics.

DOJ Retrial Decision Factors

The Trump administration's stated goal of making the United States the "crypto capital of the world" may influence the DOJ's decision. Chervinsky argued that pursuing the deadlocked charges would contradict this objective.

Several factors will likely influence the retrial decision, including the likelihood of securing convictions in a second trial and the broader political climate surrounding cryptocurrency regulation.

Tornado Cash Background and Sanctions

The US Office of Foreign Assets Control imposed sanctions on Tornado Cash in 2022, alleging the crypto mixing service facilitated money laundering activities. DOJ officials claimed the protocol helped launder over $7 billion in cryptocurrency between 2019 and 2022.

Prosecutors specifically accused Tornado Cash of assisting North Korean state-sanctioned hackers in laundering stolen funds. However, a US court overturned the Tornado Cash sanctions in January 2025, representing a significant victory for privacy-preserving protocols.

Precedent-Setting Implications

The Storm case has drawn intense scrutiny from the cryptocurrency industry and privacy advocates. Legal experts consider the trial precedent-setting for digital privacy rights and its potential impact on open-source software developers in the United States.

The case highlights the ongoing tension between regulatory enforcement and innovation in the decentralized finance space, with outcomes potentially shaping the future development of privacy-focused cryptocurrency protocols.

What's Next

The DOJ's decision on whether to retry the deadlocked charges will significantly impact both Storm's legal future and the broader DeFi industry. The decision timeline remains unclear, but legal experts expect resolution within the coming days or weeks.

The partial verdict underscores the complex legal challenges facing cryptocurrency developers and the need for clearer regulatory frameworks in the evolving digital asset landscape.

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