Tornado Cash Co-Founder Roman Storm Goes on Trial in New York

Trial Overview

On July 14, 2025, Roman Storm, co-founder of the privacy tool Tornado Cash, appeared in the U.S. District Court for the Southern District of New York. He faces federal charges stemming from allegations that the mixer facilitated laundering of over \$1 billion in illicit funds.

Storm has pleaded not guilty to all counts, which include conspiracy to commit money laundering, conspiracy to violate sanctions, and operating an unlicensed money transmitting business.

Charges & Context

The Department of Justice alleges that Tornado Cash was used by North Koreas Lazarus Group and other bad actors to obscure blockchain transactions. Prosecutors say Storm knowingly enabled these illicit flows and failed to register the protocol as a money transmitter .

If convicted, Storm could face up to 45 years in prison, marking one of the most severe potential sentences ever sought against a software developer in the blockchain space.

Defense Arguments

Storms team contends Tornado Cash is a decentralized, open-source protocol and that Storm wrote no proprietary code after 2020. They argue that code is protected speech under the First Amendment and that he cannot control how users employ the tool.

“This case is a battle for decentralized finance and free speech,” said Amal Ibraymi, legal counsel at Aztec Labs. “Storm simply published code; he did not launder a single dollar.”

Potential Implications

Observers say the verdict could set a landmark precedent on developer liability. A conviction might chill innovation in privacy and DeFi, while an acquittal could bolster arguments that code is protected expression.

Future Outlook

The trial is expected to run several weeks, followed by potential appeals. Many anticipate the case could ultimately reach the U.S. Supreme Court, defining the boundary between software development and criminal conduct.