Tornado Cash Developer Roman Storm Found Guilty in U.S. Trial
The trial of Roman Storm, co-founder of Tornado Cash, concluded on August 6. The jury found him guilty of operating an illegal money transfer business but did not reach a consensus on the money laundering charge, leading to the possibility of retrial. He was acquitted of the sanctions evasion charge.
Key points from the trial include:
- Storm faces a maximum of 5 years in prison for the guilty verdict.
- Prosecutors requested custody, but he remains free on bail pending sentencing.
- The trial's outcome may classify non-custodial cryptocurrency services as Money Service Businesses (MSBs) under U.S. law.
- Legal defense funding included $1.25 million from Paradigm and $500,000 from the Ethereum Foundation.
- The U.S. Treasury reversed sanctions on Tornado Cash earlier this year, aiding Storm's defense.
This case sets a legal precedent regarding the treatment of privacy-focused protocols and their developers, signaling regulatory interest in decentralized finance tools.