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Tornado Cash Co-Founder Roman Storm Found Guilty on Money Transmitting Charge

A Manhattan jury has delivered a partial verdict in the case of Tornado Cash co-founder Roman Storm. According to Inner City Press, Storm was found guilty of operating an unlicensed money transmitter but not guilty on a sanctions-related charge. The jury deadlocked on a money laundering charge after days of deliberation.

Storm, charged in 2023 with conspiracy to commit money laundering and sanctions violations, faces potentially decades in prison. Prosecutors allege Tornado Cash facilitated over $1B in money laundering, including funds for North Korea’s sanctioned Lazarus Group. They claimed Storm was aware of the illicit activities and profited millions. Storm’s defense argued he opposed hacker use and was shocked to learn of North Korean involvement.

The crypto community, including the DeFi Education Fund and Ethereum co-founder Vitalik Buterin, has rallied behind Storm, arguing that developers of noncustodial protocols like Tornado Cash shouldn’t be held liable under the Bank Secrecy Act. Buterin, who once suggested building such a tool, emphasized Ethereum’s commitment to supporting its own.

This verdict follows guilty pleas from Samourai Wallet co-founders last week on similar charges. The case raises critical questions about developer liability and digital privacy.