Tornado Cash Co-Founder Awaits Jury Verdict, 40 Years Sentence on the Line

Roman Storm, the co-founder of crypto mixing service Tornado Cash, is awaiting the jury’s verdict over the practices of illicit activities. The development comes at a time when crypto executives are being charged with multiple illegal activities. Both the prosecution and the defense presented their final statements before the court. 

A recent X post disclosed that United States prosecutors assert that Storm engaged in a conspiracy to launder funds, breached federal sanctions, and ran an unauthorized money transmission enterprise. A conviction could carry a sentence of up to four decades. 

Prosecutors Make Final Push 

Following the delivery of the judge’s deliberation phrase, Assistant United States Attorney (AUSA) Ben Gianforti presented the case that Storm was guilty across all indictments. These include the alleged breach of international sanctions targeting North Korea and its cyber division, the Lazarus Group.

During his concluding remarks, Gianforti asserted that Tornado Cash was utilized in the aftermath of significant cyber intrusions. He cited the KuCoin and Ronin incidents. He emphasized that the service processed approximately $350 million from a Lazarus Group wallet, even after U.S. sanctions were imposed. 

“The business was privacy for criminals. I urge you to use your common sense. Roman Storm is guilty. Thank you,” the AUSA said.  

Growing Legal Pressure on Crypto Industry Figures

David Patton, representing the defense, contested the prosecution’s allegations. He argued that Tornado Cash should be viewed similarly to other technological tools used by users and bad actors to engage in illicit conduct. 

According to the defense attorney, Storm had no desire for hackers to take advantage of Tornado Cash. Patton added that Storm did not react with enthusiasm upon learning that North Korean cybercriminals had used it. 

“The prosecution went over the line, talking about cashing out. That was because of the sanctions that we are not allowed to refer to. I’d ask for a mistrial, Patton said.  

There has been an increasing number of exchange executives accused of illegal practices such as money laundering and excessive spending. The act has led to prison sentences of over 2 years.

Recently, Samourai Wallet founders pleaded guilty to operating an unlicensed money-transmitting business and committing money laundering. For allegedly enabling over $2 billion in illegal transfers through their crypto mixer, CoinTab reported that the defendants may face potential prison terms of up to 25 years.

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