- Tornado Cash co-founder Roman Storm found guilty of running an unlicensed money transmitting business.
- The case sparked major backlash from the crypto community, including support from Vitalik Buterin and DeFi Education Fund.
- See what Wall Street is buying with instant access to ratings on 1,000 top stocks, including Goldman Sachs, Morgan Stanley, and more. Unlock all ratings now.
Roman Storm, co-founder of Tornado Cash, has on Wednesday been convicted of conspiracy to operate an unlicensed money transmitting business.
What Happened: The charge that carries a maximum sentence of five years in prison.
The jury found him not guilty on the count of violating U.S. sanctions and could not reach a verdict on the money laundering charge, as reported by Inner City Press.
Storm was originally charged in 2023 for allegedly enabling the laundering of over $1 billion through Tornado Cash, including funds tied to North Korea's Lazarus Group.
Throughout the trial, Storm maintained his innocence, asserting that he had no intent to aid illicit activity, and distanced himself from the project once he learned of any misuse.
Also Read: More Young Traders Are Turning To AI When Crypto Gets Chaotic, Survey Says
Why It Matters: The verdict, delivered in a Manhattan federal court under Judge Katherine Polk Failla, represents a pivotal moment in the ongoing debate over the legal responsibilities of open-source developers.
Prosecutors alleged Storm knowingly profited from illegal usage of the Tornado Cash protocol, while the defense emphasized that noncustodial software developers shouldn't be treated as financial intermediaries.
This case follows similar legal scrutiny against other privacy protocol creators, such as the Samourai Wallet co-founders who recently pled guilty.
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