CMC News

Tornado Cash Co-Founder Convicted on Money Transmitter Charges

Roman Storm faces up to five years in prison after a Manhattan jury found him guilty of conspiracy to operate an unlicensed money transmitting business.

The jury deadlocked on two additional charges, including money laundering conspiracy and North Korea sanctions violations, after four days of deliberation.

Judge Katherine Failla issued special instructions urging unanimous verdict after jurors reported being deadlocked on certain charges.

Prosecutors argued Storm could have modified Tornado Cash code to prevent illicit use but chose not to act.

The defense presented expert witnesses including #Ethereum core developer Preston Van Loon and NAXO co-founder Matthew Edman.

Storm was indicted in August 2023 and pleaded not guilty to all charges, maintaining innocence throughout the trial.

The judge referenced other crypto cases including Sam Bankman-Fried, all resulting in prison sentences in the same district.

Supporters contributed over $3 million to his legal defense fund, with donations from Vitalik Buterin and Paradigm founder Matt Huang.

Storm's sentencing hearing has yet to be scheduled following the partial conviction.

The case sets important precedent for #TornadoCash developers and decentralized protocol creators facing regulatory scrutiny.