Tornado Cash Founder’s Legal Storm: Split Verdict as Court Delivers Guilty & Not Guilty Rulings

Tornado Cash's co-founder faces a legal whirlwind—convicted on one charge while walking free on another. The crypto world watches as privacy tools clash with regulators' iron grip.

The Charges That Stuck

Prosecutors landed a blow with one conviction, proving even anonymizing tech isn't bulletproof against the long arm of the law.

The Hole in the Case

But the mixed verdict shows cracks in the system—when even courts can't agree, maybe the rules need a hard fork. (Meanwhile, traditional finance still launders billions with a wink and a handshake.)

Privacy tech isn't dead—but this case just made its future a whole lot messier.

Jury Deadlocks On Key Charges Against Tornado Cash Founder

As reported by Inner City Press on social media, the jury found Storm guilty on only one of three counts, leaving the more serious allegations of conspiracy to commit money laundering and conspiracy to violate North Korean sanctions unresolved.

The charges against Storm, along with his co-founder Roman Semenov, revolve around the operation of Tornado Cash, a cryptocurrency mixer that has been implicated in laundering over $1 billion in criminal proceeds. 

US authorities allege that the service facilitated untraceable financial transactions, allowing hackers—some of whom were allegedly backed by the North Korean government—to conceal the illicit origins of their funds. 

The DOJ’s indictment emphasized that while Storm and Semenov presented Tornado Cash as a sophisticated privacy service, they “knowingly” aided criminals in their efforts to disguise the fruits of their illegal activities.

Accused of Skipping KYC And AML Regulations

The indictment also pointed out that the founders of Tornado Cash intentionally bypassed essential regulations, such as implementing “know your customer” (KYC) and anti-money laundering (AML) programs. 

The Department of Justice alleged that this decision not only contravened existing laws but also contributed to money laundering operations that the service enabled. 

As the jury’s mixed verdict indicates, the intersection of cryptocurrency and law enforcement remains a contentious issue, with regulators grappling to strike a balance between fostering innovation and preventing illicit activity.

Featured image from DALL-E, chart from TradingView.com