Developer of Tornado Cash Found Guilty: A Legal Tsunami in Crypto World!

by

August 6th, in a courtroom where the air was thick with anticipation, the United States trial against Roman Storm, a developer and founder of Tornado Cash, concluded after four weeks of intense deliberation. The jury, after much contemplation, pronounced Storm guilty of operating an illegal money transfer business. 🎉🎉 It seems the wheels of justice turn slowly, but when they do, they grind exceedingly fine.

David Morris, a journalist who witnessed the drama unfold, reported from the courtroom. On the additional charges, the verdict was a mixed bag: the jury couldn’t agree on the money laundering charge, and the sanctions evasion charge was deemed not guilty. It appears that some threads of the legal web were too tangled even for the jury to unravel. 😅 If the state decides to try Storm again on the money laundering charge, it might feel like a never-ending saga of legal battles. 📜🔥

We have a verdict in US. v Storm

– The Rage (@theragetech) August 6, 2025

What Happens at The End of This Trial?

For the charge on which Storm was found guilty, he faces a maximum sentence of 5 years in prison-a stark contrast to the 20-year sentences for the other charges. The prosecutor, ever the zealous guardian of the law, requested that Storm be held in custody. However, Judge Katherine Polk, with a stroke of her gavel, ruled that Storm could remain free on bail, awaiting the final decision of the court. It’s as if the scales of justice tipped just enough to grant him a temporary reprieve. 🏛️⚖️

The Ethereum community, along with other cryptocurrency enthusiasts, watched this trial with bated breath, aware of the potential precedents it could set in the U.S. justice system. This verdict now sets a precedent that non-custodial cryptocurrency services might be categorized as Money Service Businesses (MSBs) and thus subject to stringent regulations. It’s a new chapter in the ongoing saga of crypto regulation, and the ink is still drying. 📝📚

Waves Generated by The Trial of Tornado Cash and Its Developer

The trial, which commenced on December 2, 2024, was preceded by numerous attempts by the defense to avoid it, arguing that the First Amendment’s protection of freedom of speech extended to programming. The case garnered such attention that even venture capital firm Paradigm stepped in, donating $1.25 million to support Storm’s legal defense. The Ethereum Foundation, not to be outdone, contributed $500,000 to the cause. It’s as if the crypto world united to defend a principle greater than any single individual. 🌍🤝

A peculiar twist in the tale occurred on January 22, when the U.S. Treasury reversed sanctions on Tornado Cash. This move, which seemed almost too convenient, significantly aided Storm’s case, leading to the dismissal of two of the charges. It’s as if the gods of justice and finance had a change of heart. 🤔✨

This verdict is a watershed moment for the cryptocurrency industry, setting a legal precedent for how privacy-focused protocols and their developers will be treated under U.S. law. While Storm managed to dodge the most severe charges, his conviction sends a clear message: regulators are ready to pursue developers of decentralized financial tools. The industry now waits with bated breath for sentencing and potential appeals, which could further reshape the regulatory landscape for privacy-preserving cryptocurrency technologies. 🚀🔍

Read More

2025-08-06 23:26