A US jury has reached a deadlock on key charges against Roman Storm, the founder of Tornado Cash on Wednesday. The jury was unable to come to a unanimous decision regarding allegations of money laundering and sanctions evasion, which stem from charges filed by the US Department of Justice (DOJ) two years ago.
However, the Jury did find the cryptocurrency mixer’s founder guilty of a lesser charge: conspiracy to operate an unlicensed money transmitting business.
The charges against Storm, along with his co-founder Roman Semenov, revolve around the operation of Tornado Cash, a cryptocurrency mixer that has been implicated in laundering over $1 billion in criminal proceeds.
US authorities allege that the service facilitated untraceable financial transactions, allowing hackers—some of whom were allegedly backed by the North Korean government—to conceal the illicit origins of their funds.
The DOJ’s indictment emphasized that while Storm and Semenov presented Tornado Cash as a sophisticated privacy service, they “knowingly” aided criminals in their efforts to disguise the fruits of their illegal activities.
The Department of Justice alleged that this decision not only contravened existing laws but also contributed to money laundering operations that the service enabled.
As the jury’s mixed verdict indicates, the intersection of cryptocurrency and law enforcement remains a contentious issue, with regulators grappling to strike a balance between fostering innovation and preventing illicit activity.
Featured image from DALL-E, chart from TradingView.com
