Unauthorized Monetary Activities End in Guilt for Roman Storm
Roman Storm, the co-founder of the cryptocurrency mixing service Tornado Cash, has been found guilty of conspiracy to operate an unlicensed money transmitting business. However, the jury was unable to reach a unanimous verdict on the more serious charges of conspiracy to commit money laundering and conspiracy to evade U.S. sanctions related to North Korea [1][3][4].
Storm pleaded not guilty to all charges. The government's case focused on Tornado Cash's role in mixing cryptocurrency used by hackers and other illicit actors [2].
Despite the guilty verdict, Storm currently remains free on bail. The judge denied prosecutors' request to detain him before sentencing due to his ties to the U.S. and the size of his bond [1][3][4]. His defense team plans to appeal the money transmission conviction, arguing there are serious legal questions around that charge [3][4].
No sentencing date has been set yet, and it remains unclear whether prosecutors will seek to retry Storm on the two unresolved charges of money laundering and sanctions evasion [3][4]. If convicted on these charges, Storm could face a maximum prison sentence of 20 years for each count [1].
The case is significant, as it marks a rare and high-profile U.S. prosecution targeting crypto privacy technology linked to sanctioned countries, and has important implications for DeFi legislation and privacy-focused blockchain protocols [2][5].
In summary: - Guilty: conspiracy to operate an unlicensed money transmitting business (max 5 years). - Hung jury: conspiracy to commit money laundering and conspiracy to violate international sanctions (each max 20 years). - Current status: awaiting sentencing, free on bail, potential appeals and retrial on hung charges uncertain [1][3][4]. - Storm remains out on bail pending the next steps in the legal process. - The unlicensed money transmitter charge carries a maximum five-year sentence. - Storm's case centers around Tornado Cash, a cryptocurrency mixing service. - Storm was initially indicted in August 2023 on three counts: conspiracy to commit money laundering, operating an unlicensed money business, and violating U.S. sanctions law. - Sentencing for Storm has not yet been scheduled.
[1] The New York Times
[2] Decrypt
[3] CoinDesk
[4] Bloomberg
[5] Cointelegraph
- The banking-and-insurance industry and finance sectors may be watchful of the outcome of Roman Storm's case, given its implications for DeFi legislation and privacy-focused blockchain protocols.
- Despite Storm's guilty verdict for operating an unlicensed money transmitting business, he still faces potential retrial on charges of money laundering and sanctions evasion, which if convicted, could lead to a prison sentence of up to 20 years for each count.
