A federal judge heard arguments on whether to acquit Tornado Cash co-founder Roman Storm on conspiracy charges, but signaled she may not be ready to make a decision anytime soon.

Judge Katherine Polk Failla of the Southern District of New York presided over a hearing on Storm’s motion for acquittal under Criminal Rule 29, which asks the court to throw out charges when the prosecution’s evidence is legally insufficient. Storm was convicted last August of conspiracy to operate an unlicensed money-transmitting business, but a jury was unable to reach a unanimous verdict on two more serious charges — conspiracy to launder money and conspiracy to violate U.S. sanctions — resulting in a partial mistrial.

Storm’s attorneys argued that Tornado Cash is a legal, non-custodial protocol and that his work maintaining the software does not make him liable for criminal actors who also used the platform. His defense team has maintained since the original trial that Storm had no operational control over transactions and never intended for the protocol to be used by criminals. They further argued that denying the acquittal would effectively criminalize the publication of decentralized software in violation of the First Amendment.

Government prosecutors pushed back, arguing that Storm not only facilitated but also profited from money laundering through the protocol. Prosecutors allege that Tornado Cash processed more than $1 billion in illicit funds, including hundreds of millions linked to North Korea’s Lazarus Group.

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Patrick Wilson, General Counsel of the Solana Policy Institute, called the prosecution’s expansive framing “alarming,” warning that it could recast otherwise lawful activity as illegitimate once criminals use a non-custodial tool at sufficient scale.

Amanda Tuminelli, CEO of the DeFi Education Fund, attended the hearing and said the government still does not understand the technology at issue. She added that while Failla asked detailed questions, predicting how she will rule is impossible. Given the judge’s focus on scheduling a potential retrial for late 2026, Tuminelli said she expects the case to continue.

If Failla grants the acquittal, prosecutors would need to decide whether to appeal or abandon the case. If denied, Storm faces sentencing on his existing conviction, which carries up to five years in prison, and a retrial on the two remaining charges that prosecutors have asked to schedule for October.

This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.