Roman Storm, co-founder of the cryptocurrency mixing service Tornado Cash, has been found guilty of operating an unlicensed money-transmitting business.
This verdict stems from accusations that Tornado Cash facilitated over $1 billion in illicit transactions, with Storm and his co-founders allegedly earning more than $12 million in the process. Storm now faces a potential maximum sentence of five years for this specific charge. Additional charges concerning money laundering and conspiracy to violate sanctions remain pending.
The case has intensified the ongoing debate surrounding the boundaries of open-source software development and digital privacy protections within the cryptocurrency industry. Authorities argued Tornado Cash’s design enabled the laundering of proceeds from high-profile hacks.
As a self-taught programmer focused on the Ethereum ecosystem, Storm developed Tornado Cash as a privacy tool. He has pleaded not guilty to all charges, asserting he is being targeted solely for writing open-source code and describing himself as a ‘proud United States citizen’ in his defense. His trial was closely watched for its implications on developer liability.