Roman Storm Found Guilty of Operating Unlicensed Crypto Mixing Service Tornado Cash

Roman Storm, a co-founder of the Ethereum-based privacy tool Tornado Cash, has been found guilty of conspiring to operate an unlicensed money-transmitting business by a U.S. jury. The conviction relates to the use of Tornado Cash, which prosecutors allege was exploited by criminals to launder over $1 billion in cryptocurrency. The guilty verdict was delivered on the single charge of operating an unlicensed business, while the jury deadlocked on two other counts involving money laundering and sanctions violations, which remain unresolved [1].

Storm, a Russian immigrant who moved to the U.S. in 2008, built a career in software engineering before shifting his focus to blockchain and decentralized technologies. He co-founded Tornado Cash in 2019, a tool designed to obscure the flow of digital assets on the Ethereum network by mixing transactions to protect user privacy. The platform gained popularity among users seeking financial anonymity, but it also became a tool for illicit actors, including ransomware groups and hackers [1].

The U.S. Department of Justice (DOJ) argued that Storm was aware of the tool’s misuse and benefited financially from its operation, citing that he and his co-founders had collectively earned over $12 million from the platform. Storm maintained in court that Tornado Cash was a legitimate privacy tool and that he should not be held responsible for how others used it. The jury’s decision supports the prosecution’s stance, suggesting that developers may be held accountable for the real-world consequences of their tools, even when they are decentralized and open-source [1].

The case raises broader regulatory and ethical questions about the responsibilities of developers in the decentralized finance (DeFi) space. Tornado Cash, by design, lacks centralized control, making traditional forms of oversight and regulation difficult to apply. However, the conviction of one of its creators signals that individuals may still face legal consequences if their tools are widely associated with criminal activity. Legal experts note that the DOJ has the option to retry Storm on the unresolved charges, which could add up to 40 years in potential sentencing if he is found guilty again [1].

Storm’s trial is being seen as a precedent-setting moment in the legal landscape of cryptocurrency. It reflects the increasing scrutiny that governments are placing on DeFi and other decentralized platforms, especially those that enable financial anonymity. The outcome also highlights the growing tension between technological innovation and regulatory compliance, particularly in jurisdictions where anonymity and decentralization are core principles of the digital economy [1].

As the DOJ considers its next steps, the case is expected to influence future legal proceedings involving privacy tools and open-source software in the crypto sector. The legal framework for such technologies remains uncertain, and this verdict may serve as a cautionary signal for developers considering the creation of tools with potential misuse.

Source:

[1] Techmeme - [https://techmeme.com/index.html](https://techmeme.com/index.html)