Roman Storm has been convicted on charges of operating an unlicensed money-transmitting business through his involvement with the cryptocurrency privacy tool Tornado Cash.
The conviction, stemming from Storm’s role with the sanctioned platform, carries a potential federal prison sentence of up to five years. This outcome has ignited significant concern within the cryptocurrency industry.
Industry advocacy groups, including the Blockchain Association and Crypto Council for Innovation, argue the ruling sets a dangerous precedent for developer liability. They contend it could hold creators responsible for the misuse of their open-source software by third parties, potentially chilling innovation in decentralized finance (DeFi).
Tornado Cash, designed to obscure cryptocurrency transaction trails, was sanctioned by the U.S. government over alleged use in money laundering.
Highlighting the case’s importance to the crypto ecosystem, the Ethereum Foundation has pledged $500,000 to support Storm’s legal expenses during the post-conviction phase. Industry groups are actively supporting legal challenges and appeals, seeking clearer regulatory boundaries for software developers.