Jury convicts Roman Storm on unlicensed cash transmission; held on laundering, not responsible on sanctions
A Manhattan federal jury discovered Twister Money developer Roman Storm responsible of conspiring to function an unlicensed cash transmitting enterprise.
As Internal Metropolis Press reported on August 6, the jury returned a blended verdict by discovering Storm not responsible of sanctions evasion underneath IEEPA, and unable to achieve a unanimous verdict on cash laundering conspiracy.
Amanda Tuminelli, govt director of the DeFi Schooling Fund, criticized the prosecution’s theories on the hung counts of cash laundering and sanctions, arguing they depend on “the wrong, harmful, and limitless precept {that a} software program developer could be held accountable for third events’ use of their code.”
She urged the DOJ to not retry Storm on these expenses and famous that the “Trump DOJ” can and will select to not enable the Southern District of New York to pursue this case additional.
No jail sentence
Following the decision announcement, Assistant US Legal professional Arad moved to remand Storm to custody, arguing there’s a presumption of detention after conviction and that Storm poses a flight threat given his background and entry to vital crypto funds.
Prosecutors referenced messages about immigration “workarounds” and alleged entry to multi-million-dollar wallets, together with funds linked to co-defendant Roman Semenov, who stays at giant.
Storm’s protection opposed remand, noting he has complied with bond circumstances, surrendered his passport, and has a home-secured bond in place. Decide Katherine Polk Failla said her perception that Storm just isn’t a threat by being thought-about responsible solely on the cash transmitting cost. She added:
“He might enchantment, he has each incentive to remain and struggle. He isn’t a threat of flight, given the scale of the bond. There’s a variety of preventing left on this case earlier than sentencing, and I feel Mr. Storm will keep for it.”
The decide took arguments on the spot after receiving the jury’s be aware and partial verdict, which got here after an Allen cost urging additional deliberations earlier within the day. With the jury held on the laundering depend and an acquittal on sanctions, prosecutors will search to retry the counts.
Journalist Eleanor Terrett reportedly caught Storm leaving the courtroom. He said:
“It’s a giant win. The ‘1960’ cost is bullshit and we’re going to struggle all of it the way in which.”
She mentioned he was relieved to not be remanded and famous that his 5-year-old daughter is a key motive he’ll preserve contesting the only depend on which he was convicted. Storm instructed her that he’s heading again to Seattle for now.
Storm was charged in 2023 with conspiracy to launder cash, function an unlicensed cash transmitting enterprise, and violate US sanctions, tied to his function in constructing and working the Ethereum-based mixer Twister Money.
Prosecutors say Twister Money was used to launder over $1 billion by unhealthy actors, together with North Korea-backed Lazarus Group.
