Tornado Cash Co-Founder Convicted on Money Transmission Charges

A Manhattan federal jury delivered a partial verdict in the high-profile case against Tornado Cash co-founder Roman Storm. The jury convicted Storm of operating an unlicensed money transmission business but deadlocked on more serious charges of money laundering and sanctions violations.

Prosecutors alleged Storm's crypto mixing service facilitated over $1 billion in illicit transactions, including funds tied to North Korea's Lazarus Group. The defense maintained Storm never intended the platform for illegal use, despite prosecutors claiming he knowingly profited from its misuse.

The case highlights ongoing regulatory scrutiny of privacy-focused crypto tools. Judge Katherine Polk Failla acknowledged the complexity of the matter, calling it a "hard-fought case" after jurors failed to reach consensus on two counts following extended deliberations.