Jury Weighs Case Against Tornado Cash Founder in Landmark Crypto Trial

Jury deliberations have begun in the United States in the high-profile trial of Roman Storm, co-founder of the cryptocurrency mixing service Tornado Cash. Storm faces up to 40 years in prison if found guilty on charges of money laundering conspiracy, violation of U.S. sanctions, and operating an unlicensed money-transmitting business. The case, unfolding in the Southern District of New York, has drawn significant attention due to its potential to set a legal precedent regarding the liability of software developers in decentralized systems and privacy-focused crypto tools [1].

Prosecutors have argued that Tornado Cash is widely used for illegal activities, including by North Korea’s Lazarus Group to evade U.S. sanctions. Assistant U.S. Attorney Ben Gianforti described Tornado Cash as a “fancy online money launderer” that helped obscure the proceeds of major cyberattacks, such as the KuCoin and Ronin breaches. According to the prosecution, $350 million in funds were transacted through the platform following the imposition of sanctions, and they maintain that Storm actively conspired to facilitate these illicit transactions [1].

In contrast, Storm’s defense team, led by attorney David Patton, has focused on the lack of criminal intent. They argue that Tornado Cash is a dual-use technology, similar to other tools that can be used both lawfully and illegally. Patton emphasized that merely knowing the platform could be misused is not the same as participating in criminal conduct. He pointed out that Storm did not celebrate when North Korean hackers exploited the service and reiterated that a criminal conviction requires proof of willful intent, not just knowledge of misuse [1].

With the jury now weighing these arguments, the trial’s outcome could have far-reaching implications for the development and legal treatment of decentralized financial tools in the United States. If the prosecution’s case is accepted, it could signal a more aggressive stance from U.S. authorities toward developers of open-source, privacy-enhancing technologies [1].

Source: [1] Jury Begins Deliberations in Roman Storm Tornado Cash Trial (https://coinmarketcap.com/community/articles/688b70da708d166b73879de5/)