Tornado Cash Co-Founder Roman Storm Faces Money Laundering Trial New York

Roman Storm, co-founder of the Ethereum-based crypto mixer Tornado Cash, is on trial in New York facing charges including conspiracy to commit money laundering, sanctions violations, and operating an unlicensed money transmitting business. The U.S. government alleges that Tornado Cash was used to launder over $350 million linked to the North Korean Lazarus Group and other high-profile hacks, framing the platform as a tool for criminal activity. Storm's defense argues that Tornado Cash was designed to provide privacy for ordinary users and that he should not be held responsible for illicit uses by others, emphasizing the protocol's legitimate purpose to enhance transaction privacy on the blockchain. The trial has featured complex technical testimony, with some witnesses choosing to plead the Fifth, and the prosecution's strategy has been complicated by recent DOJ policy shifts under the current administration that have relaxed crypto enforcement. Support for Storm includes major figures in the crypto community, such as Ethereum co-founder Vitalik Buterin, and a crowdfunding campaign raising over $3 million for his defense. The case is seen as pivotal for the future liability of decentralized software developers and the boundaries of privacy versus regulatory compliance in the crypto space.