A jury in Manhattan has reached a verdict, finding Roman Storm, a co-creator and developer of Tornado Cash, guilty on charges connected to operating an unauthorized money transfer business.
The decision, delivered on Wednesday in the US District Court for the Southern District of New York (SDNY), saw Storm convicted of one felony charge stemming from his involvement with Tornado Cash, reports Inner City Press, who were covering the trial.
Roman was found guilty of conspiring to run an unlicensed financial transmission service, potentially facing a maximum prison sentence of five years. The jury did not reach a consensus on charges of conspiracy to commit money laundering or conspiracy to violate sanctions against North Korea.
The prosecution based its arguments on testimonies from witnesses, primarily from the Federal Bureau of Investigation and Internal Revenue Service, alongside hackers. These witnesses claimed Storm possessed the capabilities to alter Tornado Cash’s code to prevent its misuse by criminal elements, but opted against doing so. Storm’s defense presented expert witnesses, including Ethereum core developer Preston Van Loon and NAXO co-founder Matthew Edman.
In August 2023, the Tornado Cash co-founder faced indictment on charges including money laundering, conspiracy to operate an unlicensed money transmitting business, and conspiracy to breach US sanctions. Storm entered a plea of not guilty and had remained out on bail since his initial court appearance.
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During the trial, Judge Katherine Failla acknowledged considering other prominent crypto-related cases, citing those of Sam Bankman-Fried (former FTX CEO), Nathaniel Chastain (ex-OpenSea product manager), and Karl Greenwood (OneCoin co-founder). All three individuals, whose cases were also tried in the SDNY, received prison sentences.
The date for Storm’s sentencing remains unscheduled. He has consistently maintained his innocence throughout the trial.
Since at least March, his X (formerly Twitter) profile has stated that he is “a proud United States citizen targeted by Biden’s administration and SDNY for writing open source code.”
Supporters of the Tornado Cash co-founder have contributed over $3 million towards his legal expenses. Notable donors included Ethereum co-founder Vitalik Buterin, Paradigm founder Matt Huang, and the Ethereum Foundation.
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Reporting contributed by Vince Quill