Co-Founder of Tornado Cash, Roman Storm, Convicted on One Count of Misconduct

In a high-profile trial, Roman Storm, co-founder of the controversial crypto mixer Tornado Cash, has been found guilty of a single felony charge for operating an unlicensed money transmitting business. The conviction, a victory for the Department of Justice, marks a new legal strategy by authorities: targeting the individuals behind the code, not just the code itself.

The prosecution argued that Storm and his co-founders knowingly built, operated, and profited from a service that was primarily used by criminals. The case centered on whether the developers of Tornado Cash were responsible for how the privacy mixer was used. The jury convicted Storm of conspiracy to operate an unlicensed money transmitting business.

The conviction for operating an unlicensed money transmitting business signals that the development of privacy-enhancing tools may be a legally perilous undertaking in the United States. The verdict raises serious questions about the legal liability of open-source software developers.

The case has far-reaching implications for the crypto and decentralized finance (DeFi) communities. It could set a precedent for prosecuting developers of privacy-enhancing tools, and the outcome of Storm's appeal could have lasting effects on the legal standing of open-source developers worldwide.

The fight is not over, as Storm's legal team has already indicated they will appeal the conviction. The jury was unable to reach a unanimous decision on the charges of conspiracy to commit money laundering and conspiracy to violate U.S. sanctions, which is a partial reprieve for the crypto community.

Tornado Cash is a privacy mixer that has been associated with the notorious North Korean hacking group Lazarus Group. The U.S. Attorney Jay Clayton issued a statement claiming that Roman Storm provided a service for North Korean hackers and other criminals to move and hide over $1 billion of dirty money.

Meanwhile, Tornado Cash's other co-founder, Alexey Pertsev, was convicted in the Netherlands. Interestingly, a U.S. appeals court had previously affirmed that Tornado Cash's immutable smart contracts could not be sanctioned.

The verdict has sent a ripple of concern through the crypto and legal world, as it could determine if there is a line between building decentralized technology and facilitating crime. The search results do not contain information about the penalty Roman Storm faces in the appeals instance after his conviction. The outcome of this case will undoubtedly shape the future of privacy-enhancing tools in the crypto and DeFi space.