Tornado Cash Co-Founder Convicted: The Shocking Fallout of Running an Unlicensed Crypto Money Transmitter
Privacy tech meets prison time—Tornado Cash co-founder handed guilty verdict in landmark case.
Subheader: When Anonymity Isn't Enough
The verdict lands like a sledgehammer on decentralized finance's favorite privacy tool. A Dutch court just proved even crypto's most clever obfuscation techniques can't hide from regulators forever.
Subheader: The Irony of 'Permissionless'
For all the talk of cutting out middlemen, turns out money transmission licenses still matter—at least when the DOJ comes knocking. The co-founder now faces up to 20 years, proving compliance is still crypto's most expensive altcoin.
Closing thought: Maybe next time just open a Swiss bank account like traditional finance's money launderers—they've got better pastries and lighter sentences.
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Prosecutors argued that Storm was fully aware of the illegal use of the platform and knowingly profited from it. During closing arguments, they stated that Storm not only recognized Tornado Cash’s role in laundering funds, but also made millions of dollars in the process.
Defense attorneys countered that Storm did not intend for the platform to be used for criminal activity. When he learned that Lazarus Group had exploited Tornado Cash, his reaction was far from celebratory, according to his lawyer, who cited “F-bombs” and frustration.
Storm has pleaded not guilty to all charges and still faces the possibility of a lengthy prison sentence. The unresolved charges could lead to a retrial, pending the government’s next steps.
