TORN Plummets 15% After Guilty Verdict — Is This a Buying Opportunity or the Beginning of the End?

Privacy coin TORN got wrecked today—down 15% in a single red candle after a US court delivered a guilty verdict in a high-profile case tied to the protocol. The market’s knee-jerk reaction? Dump first, ask questions later.

Blood in the streets—or just weak hands folding?

Regulatory FUD isn’t new for privacy projects, but this verdict cuts deeper. No sugarcoating it: when the feds win a case, exchanges start delisting, liquidity evaporates, and suddenly your 'uncensorable' tech looks… very censorable. Meanwhile, Bitcoin maximalists are smugly sipping coffee—because of course they are.

What’s next? Either TORN’s community doubles down on decentralization (good luck with that) or we’re witnessing phase one of another 'exit scam by regulation.' Either way, traders are treating this like a radioactive asset—because nothing screams 'safe haven' like a coin that just got legally nuked.

Bonus jab: Remember when 'code is law' was a thing? Peperidge Farm remembers.

Court Finds Tornado Cash Developer Guilty

Roman Storm, a developer and co-founder of Tornado Cash, has been found guilty of running an unlicensed money transmittal business. The verdict came from a federal jury in Manhattan on August 6, following four days of deliberations.

Meanwhile, the court reached a decision on one felony charge. The jury did not reach agreement on two other charges tied to money laundering and sanctions violations. Storm now faces a sentence that could reach up to five years in prison.

TORN Price Falls After Court Ruling

Notably, the price of Tornado Cash (TORN) dropped about 15% following the verdict. The token was trading at $10.3 at press time, with a 24-hour trading volume of roughly $1.7 million. It has lost nearly 18% in one day and around 24% over the past week.

Before the decision, analyst Papa Wheelie suggested the token could dip if there was a guilty verdict. He noted that while downside was likely in that case, he expected the protocol itself to stay active and could recover in time.

$TORN dumped 15.4% today after Tornado Cash developer Roman Storm was found guilty of running an unlicensed money transmitter. pic.twitter.com/CBs98yCAI7

— CoinGecko (@coingecko) August 7, 2025

Indicators Show Continued Downward Pressure

Price charts for the TORN/USDT pair show strong selling. The Relative Strength Index (RSI) dropped to 32, approaching oversold conditions. It also moved below its signal line, which had been at 45.

Furthermore, the MACD indicator is also negative. Its line is under the signal line, and there are red bars in the histogram which are still increasing. Both indicators indicate active selling with no imminent indications of reversal.

Activity on Network Increases

The number of active addresses on the Tornado Cash network ROSE sharply on August 6, reaching 173. This marked the highest level in the past month. It came as the price dropped below $10.

For most of July, the count stayed between 60 and 120 addresses. The spike in activity may be linked to users moving funds in response to the legal outcome. It likely reflects increased caution rather than new demand.