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You are here: Home / Bitcoin Industry News / Roman Storm Jury Deadlocked, Judge Tells Them to Keep Deliberating

August 6, 2025

Roman Storm Jury Deadlocked, Judge Tells Them to Keep Deliberating

NEW YORK — The Manhattan jury tasked with deciding Tornado Cash developer Roman Storm’s fate told the court on Wednesday morning that they were deadlocked, unable to reach a unanimous verdict on at least one of the charges.

The note to District Judge Katherine Polk Failla of the Southern District of New York came on the fourth day of jury deliberations. According to reports from Inner City Press, Storm’s lawyers suggested that the court accept a partial verdict, while prosecutors requested that the jury be given an Allen charge — essentially, an instruction from the court to continue deliberating in an attempt to reach a unanimous verdict on all charges.

Failla sided with prosecutors, bringing the jury into the courtroom and instructing them to try to reach a verdict, but telling them that it is their right not to agree or change their opinions, if an agreement truly cannot be reached.

The jury’s notes over the past several days of deliberations have indicated that the jurors are carefully considering all facets of the case, including some of the more procedural aspects like venue. On the first day of deliberations, the jury asked what evidence of venue (basically, the prosecutors’ justification to bring the case in the Southern District of New York) the prosecutors showed the grand jury in 2023 to obtain their indictment.

Yesterday, the jury asked the judge for transcripts from the testimony of an FBI agent who did cell-site analysis on venture capitalist Tom Schmidt of Dragonfly Capital, who invested $900,000 in Tornado Cash’s parent company PepperSec Inc. The fact that Schmidt is based in New York was used by prosecutors to establish venue — but the jury, according to their note, seemed hesitant to accept this logic. In their note, they asked for transcripts of the agent’s testimony “to prove venue.”

The jury has also asked questions about whether Storm was legally required to respond to requests for help from foreign law enforcement, and whether intermediary wallets were also included on the Office of Foreign Asset Control’s (OFAC) specially-designated nationals (SDN) list.

Storm has been charged with one count each of conspiracy to commit money laundering, conspiracy to operate an unlicensed money transmitting business, and conspiracy to violate international sanctions. If Storm is found guilty on all charges, he faces a maximum sentence of 45 years in prison. Prosecutors say that, through Tornado Cash, Storm and his colleagues Alexey Pertsev and Roman Semenov, helped hackers and other cyber criminals — including North Korea’s state-sanctioned hacking squad, the Lazarus Group — launder over $1 billion in criminal proceeds.

Join the crypto policy conversation Sept. 10 in D.C. — Register now for CoinDesk: Policy & Regulation.

Author: Cheyenne Ligon

Filed Under: Bitcoin Industry News

Expert Witness

Ty Sagalow head shotTy Sagalow's unique background in legal, underwriting, policy drafting and claims – and his designation as a “qualified insurance expert” by the United States District Court for the Southern District of California – offers attorneys an unparalleled resource in D&O, E&O and Cyber insurance coverage disputes. He was also named "Most Helpful Expert" in a recent $8.7M coverage decision.

Mr. Sagalow served as Chief Underwriting Officer and General Counsel for AIG Executive Liability (formerly National Union Fire Insurance Company of Pittsburgh, PA), the world’s largest carrier of Directors and Officers Liability and Professional Liability Insurance. As General Counsel, Mr. Sagalow personally wrote or led teams that wrote all the D&O policies and many of the professional liability policies that AIG produced between 1988 and 2000 – policies which continue to serve as the foundational wording for the D&O and professional liability policies in the market today. As AIG Executive Liability’s Chief Underwriting Officer, Mr. Sagalow was charged with all underwriting interpretations and decisions for AIG D&O/E&O policies. In 2009, Mr. Sagalow headed up the team that rewrote all D&O policies for Zurich North America.

Ty is a cum laude graduate of Georgetown University Law Center and holds a LLM from New York University School of Law.

Bitcoin Insurance

Combining his talents as a network security insurance expert and an insurance product development expert, Ty Sagalow is the leading expert on the unique risk and insurance needs of the bitcoin industry.

With the successful sale of BitSecure(tm), the first bitcoin theft insurance policy in February of 2015, he is the first to create a sustainable, robust insurance policy to cover the theft of bitcoins and other virtual currency backed by an A-Rated, global “top 10” Property and Casualty insurance company.

Company Profile

Innovation Insurance Group is an insurance consulting firm and insurance brokerage founded by 30-year insurance executive, Ty R. Sagalow, former Chief Underwriting Officer, General Counsel and Chief Innovation Officer at AIG, and former Chief Innovation Officer at Zurich, NA and Tower Group. IIG focuses on three core practice groups: product development, expert witness services (primarily in the Management and Professional Liability areas), and bitcoin industry brokerage services.

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