Tornado Cash Roman Storm Found Guilty for Unlicensed Operation

Roman Storm, co-founder of Tornado Cash, a decentralized, non-custodial privacy solution, has been found guilty by a Manhattan jury. The verdict comes three days after the jury deliberated on two other serious counts against the developer. Still, they could not resolve it.

According to a Bloomberg report, the court found Storm guilty of a single charge, participating in an unauthorized money transfer scheme. Federal prosecutors claimed that the platform processed illicit crypto transactions exceeding $1 billion. 

Tornado Cash Developers Face Legal Battles

The report also revealed that the Tornado Cash executive helped known cybercriminals to launder stolen crypto, such as a group associated with the North Korean government. The authorities described the process as a “giant washing machine.”  

Tornado Cash launched in 2019 as a mixer. The system functions as a decentralized tool built on open-source code that hides the origin of crypto funds by mixing and distributing them through automated programs. 

Since then, its founders, including Storm, have encountered several legal battles with authorities.  Last year, A Dutch court sentenced Tornado Cash developer Alexey Pertsev to a 64-month term for his alleged role in laundering illicit funds. He was granted conditional release in February as he initiated the appeal process.

In 2022, the United States Treasury also cracked down on Tornado Cash, hitting it with sanctions under a national security law and making it off-limits for Americans. Later, a court said the Treasury had gone too far, leading to a partial rollback of the sanctions. 

Crypto Execs Face Growing Legal Pressure

Recently, during the judges’ deliberation phase, Assistant United States Attorney (AUSA) Ben Gianforti noted that Storm was guilty across all indictments. This includes the alleged breach of international sanctions.   

Gianforti also disclosed that the mixing service platform processed roughly $350 million from a Lazarus Group wallet, even after the U.S. imposed sanctions on the platform. 

Meanwhile, the latest case comes at a time when courts charge crypto executives with multiple illegal activities. While this is not new to the crypto space, the crypto scandals shake investor confidence. Last month, the Department of Justice sentenced Rowland Marcus Andrade, founder of the cryptocurrency AML Bitcoin, to 84 months (7 years) in prison for defrauding people who funded the project. 

According to the U.S. officials, Andrade allegedly secured approximately $10 million between 2014 and 2019 by making fraudulent representations. He secured investments through his company, NAC Foundation, by falsely promoting product features and partnerships that never existed.

Get Trending Crypto News as It Happens. Follow CoinTab News on X (Twitter) Now