Roman Storm, co-founder of Tornado Cash, was found guilty of conspiring to operate an unlicensed money transmitting business in the Southern District of New York on August 6, 2025.
The verdict signifies growing legal scrutiny on privacy protocols, impacting decentralized finance development, with the market closely watching for regulatory responses.
Roman Storm Found Guilty of Conspiracy
Roman Storm, co-founder of Tornado Cash, has been found guilty of conspiracy to run an unlicensed money transmitting business. The jury was deadlocked on other charges like money laundering, signifying a partial mistrial on those points.
Judge Katherine Polk Failla directed further deliberation despite the jury’s deadlock. Storm’s role as a privacy tool developer is paramount, marking this case as a significant precedent for decentralized finance and privacy technology communities.
“The legal landscape for privacy tools is rapidly evolving, and today’s verdict has set a concerning precedent for developers.” — Roman Storm, Co-founder, Tornado Cash
Crypto Sector Reacts to Legal Ruling
The verdict sends ripples through the cryptocurrency and DeFi sectors. Privacy protocol development is under scrutiny, causing a chill on funding. Yet, no dramatic shifts are noted in Tornado Cash’s Total Value Locked at present.
The division in jury opinions highlights deep-seated challenges in legal contexts. Regulatory implications are profound, sparking intense debate about privacy technologies. Historic data underscores fragmented perspectives within the community and among regulatory bodies.
First Case Targeting Open-Source Protocols
The case recalls earlier actions against centralized entities but marks the first targeting open-source protocol developers. Comparatively, OFAC’s 2022 sanctions on Tornado Cash’s addresses highlight ongoing regulatory tension over privacy tools.
Kanalcoin analysts emphasize potential regulatory shifts influencing future DeFi development. Based on historical trends, new legal frameworks could emerge shaping privacy technology’s integration with broader financial systems.
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