Tornado Cash Co-Founder Roman Storm Convicted Unlicensed Money Transmitting Business, Jury Deadlocks Money Laundering Charges

Roman Storm, co-founder of the cryptocurrency privacy protocol Tornado Cash, was found guilty by a Manhattan jury of conspiracy to operate an unlicensed money transmitting business, carrying a sentence of up to five years, while the jury deadlocked on more serious charges of conspiracy to commit money laundering and violating North Korean sanctions. Storm’s defense team emphasized that Tornado Cash is a noncustodial platform and argued the charges raise serious legal concerns, asserting their intent was to promote privacy rather than facilitate illegal activity. Prosecutors contended Storm knowingly supported the platform's misuse in laundering over $1 billion, including funds tied to the North Korean hacking group Lazarus. The judge allowed Storm, who is out on bail with his passport surrendered, to remain free pending sentencing, rejecting prosecution’s request to remand him to prison. Legal experts and the decentralized finance community view the mixed verdict as a troubling precedent that could chill innovation and privacy in the crypto space. Storm has expressed determination to fight the conviction, signaling plans to appeal and potentially challenge unresolved charges if prosecutors decide to retry him.