Tornado Cash Case: Roman Storm Found Guilty, Only One of Three Charges Convicted
After four days of deliberation, the New York federal jury reached a unanimous verdict only on the charge of 'operating an unlicensed money transfer business' against Roman Storm;
while no consensus was reached on the charges of money laundering and violating the International Emergency Economic Powers Act (IEEPA). This ruling from the New York federal court has sparked strong reactions within the cryptocurrency industry.
The core controversy of the case revolves around whether Storm, as a developer, should bear legal responsibility for the use of Tornado Cash. The prosecution accused Storm of being aware that the tool was used by criminal organizations such as North Korean hackers Lazarus Group for money laundering exceeding $1 billion, yet he still profited millions of dollars from it.
It is noteworthy that although the prosecution requested Storm's immediate detention due to flight risk, Judge Katherine Polk Failla ultimately approved his bail, stating, "There are still many unresolved issues in this case."
This ruling has had a profound impact on the community of cryptocurrency privacy tool developers. Just a week ago, two founders of the Bitcoin wallet Samourai Wallet acknowledged similar charges after reaching an agreement with authorities.
Legal experts point out that the core dispute in such cases lies in how to define the boundaries of developers' responsibilities. Organizations like Coin Center argue that the verdict overlooks the Financial Crimes Enforcement Network (FinCEN) guidance stating that "developers who cannot control user funds are not money transmitters."
Privacy advocates have expressed concerns over the verdict. The DeFi Education Fund has explicitly stated it will continue to support Storm's appeal, with its legal head Amanda Tuminelli emphasizing that the accusation has "fundamental flaws." Former SEC Chairman and current U.S. Acting Attorney Jay Clayton praised the conviction as an important victory in combating crimes utilizing new technologies.
In summary, with the sentencing date yet to be determined and the prosecution likely to refile on unresolved charges, the final outcome of this case still holds uncertainties.
However, it is certain that this lawsuit has once again sounded the alarm for the development and use of cryptocurrency privacy tools, and its subsequent effects may reshape the compliance standards and developmental direction of the entire industry.