Ethereum Privacy Tool Developer Faces Split Verdict in High-Profile Case

In a landmark ruling with significant implications for crypto privacy tools, Tornado Cash developer Roman Storm received a mixed verdict in Manhattan federal court. While convicted of operating an unlicensed money transmission business, the jury deadlocked on more serious charges of money laundering and sanctions violations related to the Ethereum-based mixer. The case highlights the ongoing tension between financial privacy and regulatory compliance in the cryptocurrency space, particularly concerning Ethereum's role in enabling sophisticated financial tools. Prosecutors had alleged Storm's platform facilitated over $1 billion in questionable transactions, including funds tied to North Korea, putting Ethereum's privacy capabilities under legal scrutiny. This partial victory for the developer comes at a time when the crypto industry is grappling with how to balance innovation with regulatory requirements, with Ethereum often at the center of these debates due to its smart contract functionality and prominent position in decentralized finance.

Tornado Cash Developer Faces Mixed Verdict in Landmark Crypto Privacy Case

Roman Storm, developer of privacy tool Tornado Cash, received a partial victory in Manhattan federal court. The jury convicted him of operating an unlicensed money transmission business but deadlocked on more serious charges of money laundering and sanctions violations.

Prosecutors alleged Storm's Ethereum-based mixer facilitated over $1 billion in illicit transactions, including funds tied to North Korea. His defense maintained the platform was neutral technology that bad actors exploited without his consent.

The verdict leaves unresolved the fundamental tension between financial privacy and regulatory oversight in decentralized finance. Privacy coins like Zcash and Monero weren't implicated, but the case sets precedent for developer liability.

Ethereum Nears Critical Breakout Amid ETF Inflows and Market Dominance

Ethereum teeters on the edge of a decisive price movement as institutional demand collides with aggressive profit-taking. The cryptocurrency traded at $3,634.39 after a 2% daily gain, buoyed by its first substantial ETF inflow since February—a $73 million vote of confidence from institutional players.

Regulatory clouds have partially lifted following SEC's staking clarification, allowing ETF providers to enhance their product offerings. Yet the rally faces headwinds: CryptoQuant's Maartunn reveals a staggering $418.8 million net taker volume decline, equivalent to 115,400 ETH sold at market prices—a bearish signal suggesting holders are exiting positions regardless of price impact.

Market dominance tells a brighter story. Ethereum has reclaimed 11.95% of total crypto market share after bouncing from 7.4% support, with analyst Ito Shimotsuma eyeing the crucial 12.5% resistance level. The tug-of-war between institutional accumulation and speculative sell pressure sets the stage for Ethereum's next major directional move.

Tornado Cash Co-founder Convicted Amid Rising Crypto Legal Tensions

A Manhattan jury has found Roman Storm, co-founder of cryptocurrency privacy tool Tornado Cash, guilty of operating an unlicensed money transmitting business. The verdict, delivered in the U.S. District Court for the Southern District of New York, underscores the escalating clash between crypto innovation and regulatory oversight.

Prosecutors alleged Storm facilitated the laundering of over $1 billion, including funds tied to North Korea's Lazarus Group. While the jury deadlocked on more severe charges of money laundering and sanctions violations, the case has become a lightning rod for debates about open-source development and financial privacy in decentralized ecosystems.

The defense maintained Storm never intended the protocol for illicit use, with technical complexities reportedly challenging jurors. As legal boundaries for blockchain developers remain contested, this precedent may influence how privacy-focused projects like Ethereum's upcoming upgrades navigate compliance.

Ethereum Gains Momentum Amid ETF Speculation and Network Upgrades

Ethereum (ETH) has entered a bullish phase in early 2025, fueled by rumors of a potential ETF approval and the completion of its ethereum 2.0 network upgrade. The cryptocurrency recently breached the $3,200 mark, leaving traders divided on its next move. Meanwhile, passive income strategies like cloud mining are gaining traction among investors seeking exposure without direct trading.

AIXA Miner, a hands-off cloud mining platform, promises daily ETH rewards without the complexities of wallet setups or exchange risks. The service capitalizes on Ethereum's upward trajectory while sidestepping market volatility.

Market sentiment received a significant boost when several firms filed updated applications for Ethereum ETFs with the SEC. The Ethereum blockchain further strengthened its position with a successful sharding implementation—a scalability solution designed to enhance transaction speeds for developers and users alike.

YouTube Crypto Bot Scam Steals 256 ETH Using Fake Trading Videos

Cybersecurity firm SentinelLABS has uncovered a sophisticated scam leveraging compromised YouTube channels to promote fraudulent cryptocurrency trading bots. The operation, active since early 2024, has siphoned over 256 ETH (approximately $450,000) through malicious smart contracts disguised as arbitrage tools.

Attackers repurposed aged YouTube accounts—some previously covering legitimate crypto news—to lend credibility to AI-generated videos featuring robotic narration. Victims are instructed to deploy Solidity-based smart contracts requiring minimum 0.5 ETH deposits, which covertly transfer funds to obfuscated attacker wallets. One particularly successful channel absconded with 244.9 ETH.

"The campaign demonstrates concerning evolution in social engineering tactics," notes Alex Delamotte, senior threat researcher at SentinelLABS. "Attackers are weaponizing both platform trust and blockchain's irreversible transactions." The scam remains active, with forensic analysis revealing deliberate smart contract obfuscation to conceal destination addresses.

Cosmos Health Allocates $300 Million Funding to Ethereum Treasury Reserve

Cosmos Health, a Nasdaq-listed healthcare group, has secured a $300 million financing deal with a U.S. institutional investor. The company plans to dedicate 72.5% of the proceeds from senior secured convertible notes to build an Ethereum (ETH) treasury reserve, signaling a strategic bet on the cryptocurrency's long-term value.

The remaining funds will support working capital and growth initiatives. BitGo's institutional infrastructure will custody the ETH holdings, with staking capabilities to generate additional yield. This MOVE reflects growing corporate interest in cryptocurrency treasuries as a balance sheet strategy.