Tornado Cash Dev Verdict Shakes Crypto: Privacy vs. Regulation Showdown Escalates
The crypto world braces for impact as another Tornado Cash developer faces legal reckoning—just as regulators sharpen their knives.
Privacy tech or money-laundering tool? The verdict could redefine crypto's boundaries.
Meanwhile, Wall Street still can't decide if blockchain is a threat or a spreadsheet upgrade.
The Tornado Case
According to Inner City Press, the jury has delivered its verdict on the case against Roman Storm, the developer of Tornado Cash. While Storm was found guilty of operating an unlicensed money transmission business, the jury could not reach a conclusion regarding charges of money laundering and conspiring to violate North Korean sanctions. The jury in Manhattan found him not guilty on other counts, which presents a slightly more favorable outcome for him.
In 2023, Storm faced allegations of money laundering and sanction violations tied to operating Tornado Cash and risked a lengthy prison sentence. Prosecutors alleged that he facilitated the laundering of over a billion dollars using the Tornado Cash crypto mixer.
Storm’s attorney argued that his client was troubled by unauthorized users exploiting the system. Despite this, prosecutors maintained that Storm had developed the platform in a manner that inadvertently aided criminal activities.
Nonetheless, privacy in cryptocurrencies should not be exclusive to criminals like the Lazarus Group but also to crypto investors. Public figures and anyone at risk due to substantial asset exposure also deserve privacy rights. Leading figures in the crypto market have therefore made significant contributions to support Storm’s legal expenses.
Impacts on TORN Coin
The resolution of the unlicensed money transmission charges led to a swift decline in the value of TORN Coin. Experiencing double-digit losses, this altcoin was largely delisted by central exchanges during the legal proceedings. However, sustained support from the crypto community has provided a lifeline.
Currently, TORN Coin is striving to maintain the $10 support threshold. Should it stay strong, it may reclaim $11.8; otherwise, a deeper downturn could target $8.5.
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