Co-Founder of Crypto Tool Found Guilty of Operating Unlicensed Money Transferring Business

Roman Storm, the co-founder of privacy-focused crypto tool Tornado Cash, has been convicted of operating an unlicensed money transferring business.

On Wednesday, a jury in Manhattan federal court delivered a mixed verdict, finding Storm guilty of conspiracy to operate an unlicensed money transmitting business. However, they were unable to reach a consensus on the more serious charges of money laundering and sanctions evasion linked to North Korea’s Lazarus Group.

According to reports, Storm was arrested in 2023 and charged with facilitating the transfer of over $1 billion in cryptocurrency for criminal purposes. Authorities claimed that Tornado Cash, a crypto mixer, was used by the Lazarus Group, which is alleged to have been funded by the North Korean government.

Storm’s lawyers had maintained his innocence throughout the trial, insisting that he had always intended to protect user privacy and did not knowingly facilitate illegal activities.

In closing arguments, defense attorney David Patton emphasized Storm’s commitment to upholding transparency and compliance with regulations. “Roman very much did not want hackers and scammers to use Tornado Cash,” Patton said in court.

Storm may face a maximum sentence of five years in prison for the convicted charge, but his lawyers have already indicated that they plan to challenge the conviction and fight for his full vindication.

Source: cryptotale.org