The Southern District Court of New York has found Roman Storm, co-founder of Tornado Cash, guilty on one count of operating an unlicensed money transmission business. This verdict came after three days of deliberation, during which Storm faced three charges: conspiracy to operate an unlicensed money transmission business, conspiracy to commit money laundering, and conspiracy to violate sanctions. The jury acquitted Storm of the first charge but convicted him on the second count, which pertains to the unlicensed financial services operation. Under this conviction, Storm faces a potential sentence of up to five years in prison.
The court denied the prosecution’s request to take Storm into custody, despite concerns that he might flee. The defense argued that Storm had no reason to leave the United States, citing his significant assets—secured by a $2 million bond—in Washington State, as well as his close family ties within the country, including his daughter, girlfriend, and parents, who are green card holders. Additionally, the defense highlighted the support Storm continues to receive from the domestic crypto community, which remains engaged during the appeal process.
Following the verdict, U.S. Attorney for the Southern District of New York, Jay Clayton, issued a statement condemning Storm and Tornado Cash for facilitating the transfer and concealment of over one billion dollars in illicit funds on behalf of North Korean hackers and other criminal entities. Clayton emphasized that while the speed and functionality of digital assets and stablecoins hold great promise, such technological advancements do not justify criminal misuse. He affirmed that individuals exploiting these technologies for illegal purposes will be held accountable under the law.
It is noteworthy that a memo from Deputy Attorney General Todd Blanche had previously indicated a shift away from prosecutorial regulation of cryptocurrencies and a reluctance to charge users of virtual currency mixing services. However, Clayton’s statement made no reference to this guidance. Additionally, most users of Tornado Cash were not found guilty in this case.
Source: bitcoinmagazine
