Tornado Cash Founder Faces Partial Mistrial, Conviction

Roman Storm, co-founder of Tornado Cash, was found guilty by a Manhattan jury of conspiring to operate an unlicensed money transmitting business, which carries a potential sentence of up to five years in prison. The jury could not reach a verdict on the more serious charges of money laundering and sanctions violations, resulting in a partial mistrial and leaving open the possibility of a retrial on those counts. Prosecutors alleged that Storm knowingly facilitated over $1 billion in illicit transactions, including funds tied to North Korea’s Lazarus Group, while the defense argued he did not control user funds and prioritized privacy. Judge Katherine Polk Failla denied the prosecution's request to remand Storm into custody, citing his incentive to remain and contest the conviction. The verdict has intensified debate in the crypto community about the legal exposure faced by developers of privacy and open-source tools. Sentencing for Storm has not yet been scheduled, and his legal team plans to seek dismissal of the conviction.