Crypto Developer Storm Faces 45 Years in Prison for Money Laundering

Jury selection in the criminal trial of Tornado Cash co-founder and developer Roman Storm concluded on Tuesday, with prosecutors and defense attorneys presenting their opening statements in a case that could have significant repercussions for the crypto and blockchain industry. Prosecutors focused on linking Storm to North Korean hackers who allegedly used Tornado Cash to launder funds, violating U.S. sanctions. The Lazarus Group, a notorious hacking organization, was implicated in a 2022 hack of the Ronin Bridge, resulting in the theft of approximately $600 million in cryptocurrency.

Assistant U.S. Attorney Kevin Mosley emphasized that Storm was profiting from a system designed to launder illicit funds. Mosley argued that Storm continued to commit crimes even after learning that his platform was being used by criminals. The trial has garnered attention from prominent figures in the crypto and blockchain industry, who are concerned about the potential impact of the verdict on developers creating new products. While Storm appeared in U.S. federal court, his co-defendant, Roman Semenov, remained at large at the time of publication.

The defense team argued that Tornado Cash is a privacy protocol available to everyone and that Storm should not be held criminally responsible for others using it to launder illicit funds. The prosecution objected to hypothetical references made by the defense regarding the physical safety of users. Storm's lawyer, Keri Axel, asserted that Storm had no involvement in the hacks and that the government's case was based on the premise that Storm should have taken action against the pools, which he could not do. Axel further argued that many products, including Signal and hammers, have legitimate uses but can also be misused, and that the government could not prove a criminal agreement for a criminal purpose.

The trial is ongoing, with the government calling its first witnesses. Storm estimated that the proceedings could last about a month. The charges against Storm include conspiracy to commit money laundering, conspiracy to operate an unlicensed money-transmitting business, and conspiracy to violate U.S. sanctions. If convicted, Storm faces a potential sentence of up to 45 years in prison. The trial's outcome could have significant implications for the cryptocurrency industry and the development of privacy-focused technologies, raising important questions about the legal responsibilities of developers in such cases.