The post Roman Storm Convicted in Tornado Cash Case, Faces 5 Years In Prison appeared first on Coinpedia Fintech News
On Wednesday, a Manhattan jury delivered a split verdict in the criminal trial of Tornado Cash co-founder Roman Storm. The jury found Storm guilty of conspiracy to operate an unlicensed money transmitting business. This could be the turning point for crypto’s money laundering sanctions and leave far-reaching implications for decentralized finance (DeFi) communities.
Tornado Cash Co-Funder Faces Five Years in Prison
One of crypto’s most prominent privacy mixers, Storm, was found guilty of conspiring to operate an unlicensed money transmitting business that facilitated more than $1 billion in illegal transactions. Now, Storm faces up to five years in prison after the guilty verdict.
Storm, however, escaped the bigger charges as the jury failed to reach a unanimous verdict on those counts, resulting in a partial mistrial. The two other charges included conspiracy to commit money laundering and conspiracy to violate international sanctions against North Korea. Each of these charges carried a possible 20-year sentence.
The U.S. attorney Jay Clayton stated, “Roman Storm and Tornado Cash provided a service for North Korean hackers and other criminals to move and hide more than $1 billion of dirty money.”
Complete Story of Storm’s Lawsuit
Prosecutor Benjamin Gianforti said that Storm had been informed multiple times between 2020 to 2022 that Tornado Cash was helping criminals to hide dirty money. But Storm did not pay any heed to the claims and continued to run his business in the company. Then in August 2023, Storm was arrested on the same charges.
After years of pleading not guilty, Storm managed to escape the severe punishment. Storm’s defence attorney Brian Klein said, “We are grateful the jury did not convict Roman for violating sanctions or laundering money.”
“There are serious legal issues with the sole remaining money transmitting count. We will not stop fighting for Roman, and expect him to be fully vindicated,” he added.
What’s Next? Stricter Rules for Digital Assets
For many in the crypto space, this verdict signals that the development of privacy-enhancing tools is now legally risky in the country.
“The speed, efficiency, and functionality of stablecoins and other digital assets offer great promise, but that promise cannot be an excuse for criminality,” Mr. Clayton stated.
Amanda Tuminelli, executive director at the DeFi Education Fund, told DL News, “The principle guiding the DOJ charges in this case is limitless. It basically says that any person who creates a tool that somebody else uses … is responsible for that third party’s conduct.”
