Tornado cash founders charged with money laundering/sanctions violations

[bbc.reporter]

The trial of Roman Storm has begun and this is headshaking that only few people are very much aware on how this occurrence will affect everyone's privacy on the internet if he is found guilty.

I speculate that there is a bigger agenda behind this and this case is only their place of entry to achieve this agenda. The government has always wanted to remove the people's right to privacy.



The highly-anticipated criminal trial of Tornado Cash co-founder Roman Storm began Monday with jury selection and an arcane dustup: Whether private messages and pictures furnished by Apple, X, and a venture capital firm are “business records.”

The wrangling over technical and legal minutiae could be a sign of things to come: Judge Katherine Polk Failla suggested Storm’s trial could last four weeks — one fewer than the marathon trial of Sam Bankman-Fried in November 2023.

Jurors in that trial found the shaggy-haired crypto mogul guilty of one of the largest financial frauds in US history.

The stakes of Storm’s trial are even higher, touching on free speech and the future of software development in the US, according to his supporters.

The prosecution’s case relies on a novel theory, they say: that by simply writing code, Storm conspired to help cybercriminals launder stolen crypto and evade US sanctions.

“Today, the target is Tornado Cash,” crypto advocacy firm DeFi Education Fund wrote in a summary of the case.

“But under such a sweeping interpretation, tomorrow it could be the developers of a VPN, an encrypted messaging app, or a peer-to-peer file sharing tool.”

Read in full https://www.dlnews.com/articles/defi/tornado-cash-dev-roman-storm-begins-criminal-trial-in-nyc/

[bbc.reporter]

News update.

It appears that the judge for this trial should be informed about the  differences between a centralized mixer and a decentralized application smart contracts system created on a decentralized platform. I am very much certain that if the judge knows the difference and the nature of decentralized applications, Roman Storm will be declared innocent.

This Sky Mavis CTO Andy Ho is also headshaking. He should leave the cryptospace.



Hack and scam victims who reached out to Tornado Cash requesting assistance retrieving their stolen funds received little in the way of help from the privacy tool’s developers, three government witnesses told the jury during day two of Roman Storm’s criminal money laundering trial.

One victim, a Taiwan-born Georgia woman who said she lost nearly $250,000 to a wrong-number pig butchering scam — with a portion of the proceeds laundered through Tornado Cash — said her request for help went unanswered. Another witness, a lawyer for crypto exchange BitMart, which was hacked for nearly $200 million in 2021, said that Storm told his team that there was nothing he or his fellow developers could do to retrieve the funds given the decentralized nature of the protocol.

A third witness, Andy Ho — CTO and co-founder at Sky Mavis, the blockchain gaming company behind Axie Infinity and the Ronin Network — detailed how hackers stole over $625 million in an exploit of Ronin Bridge in 2022, in effect fully looting the protocol’s coffers. Though Ho himself didn’t mention it during his testimony, the group behind the exploit was later revealed to be the Lazarus Group, North Korea’s state-sponsored hacking organization, which used Tornado Cash to launder a portion of the stolen funds.

During their examination of the three witnesses, prosecutors attempted to paint a portrait of Storm as someone who refused to lift a finger to help hack victims, or to make changes to the Tornado Cash protocol to dissuade future use of the protocol by criminals.

Read in full https://www.coindesk.com/policy/2025/07/16/hack-victims-say-tornado-cash-offered-no-help-in-the-wake-of-exploits-day-2-of-roman-storm-trial

[arabspaceship123]

If Roman Storm's found guilty & sentenced it doesn't mean it's the end of the case. He'll receive donations to help his legal team file the appeal. If he doesn't get the sentenced removed there's a possibility he'll get pardoned by Trump.

[bbc.reporter]

This is very headshaking. The skeptical me thinks that it appears  these government lawyers are creating a setting where they can manipulate this trial. Now can they do this and if the judge agrees, are the government lawyers trying to make it appear that Roman Storm does not care for privacy rights? They will imply that he created Tornado Cash only for moneylaundering and ciminality?



The government doesn’t want anyone talking about privacy during the criminal trial of Tornado Cash co-founder Roman Storm — unless it’s Roman Storm.

On Wednesday, prosecutors asked Judge Katherine Polk Failla to bar the software developer’s attorneys and witnesses from discussing “privacy rights,” arguing it could move sympathetic jurors to acquit Storm even if they think he’s guilty.

Only Storm should be permitted to discuss privacy, prosecutors said. That’s because the jurors asked to determine his guilt — or lack thereof — are allowed to consider whether he intended to break the law when he co-created Tornado Cash.

Read in full https://www.dlnews.com/articles/defi/privacy-talk-off-limits-in-roman-storm-trial-feds-say/

[NotATether]

This is very headshaking. The skeptical me thinks that it appears  these government lawyers are creating a setting where they can manipulate this trial. Now can they do this and if the judge agrees, are the government lawyers trying to make it appear that Roman Storm does not care for privacy rights? They will imply that he created Tornado Cash only for moneylaundering and ciminality?



The government doesn’t want anyone talking about privacy during the criminal trial of Tornado Cash co-founder Roman Storm — unless it’s Roman Storm.

On Wednesday, prosecutors asked Judge Katherine Polk Failla to bar the software developer’s attorneys and witnesses from discussing “privacy rights,” arguing it could move sympathetic jurors to acquit Storm even if they think he’s guilty.

Only Storm should be permitted to discuss privacy, prosecutors said. That’s because the jurors asked to determine his guilt — or lack thereof — are allowed to consider whether he intended to break the law when he co-created Tornado Cash.

Read in full https://www.dlnews.com/articles/defi/privacy-talk-off-limits-in-roman-storm-trial-feds-say/

They are trying to ban PGP all over again. Hopefully this fails, because the defense should not be forbidden to discuss the entire reason why Tornado Cash was founded in the first place.

What, are they trying to make them say that Roman Storm founded Tornado Cash only for money laundering purposes?

Very slimy of the DoJ.

[bbc.reporter]

@NotATether. Agreed. The DOJ has the Donald's men in charge and the Donald's administration is already procrypto. What is their agenda on this?

In any case, it appears that this judge is fair. How can this case not mention privacy if the purpose of Tornado Cash is to give people back their privacy.

You are correct, this DOJ is slimy.



A federal judge handed Tornado Cash co-founder Roman Storm a partial victory on Friday, allowing his attorneys and witnesses to discuss the importance of privacy during the remainder of his criminal trial.

Failla’s ruling was a blow to prosecutors, who sought to limit references to privacy on the grounds that it could improperly skew jurors’ ultimate decision.

Read in full https://www.dlnews.com/articles/defi/judge-hands-roman-storm-partial-victory-in-privacy-fight/

[arabspaceship123]

It happens in courts each day. They're trying to win the case so their lawyers have rights to present evidences like they want. Roman Storm's lawyers can challenge every thing in court. It's the beginning of the case there's going to be more each day.

This is very headshaking. The skeptical me thinks that it appears  these government lawyers are creating a setting where they can manipulate this trial. Now can they do this and if the judge agrees, are the government lawyers trying to make it appear that Roman Storm does not care for privacy rights? They will imply that he created Tornado Cash only for moneylaundering and ciminality?

[bbc.reporter]

It appears that the lawyers will move for a mistrial. These government lawyers are trying to manipulate the case, I reckon. However, I predict that if the mistrial request is granted, the DOJ might not again press charges on Roman Storm. I speculate that they know they do not have a case against him as a moneylaunderer. Also, this case will create a very bad precedent for many companies if the government lawyers win this.



Attorneys for Tornado Cash co-founder Roman Storm might move for a mistrial after learning prosecutors called a witness with a tenuous connection to the controversial crypto protocol.

If the request were granted, Storm’s criminal trial would end, though prosecutors could choose to retry the case with a new jury.

Read in full https://www.dlnews.com/articles/defi/storm-defense-eyes-mistrial-citing-government-witness/

[bbc.reporter]

News update.

This case has become  very entertaining similar to a Netflix television series hehehehe. The prosecutors have begun creating a case against the venture capitalis firm Dragon Fly for investing in Tornado Cash. It is also headshaking that they are choosing to call Tom Schmidt, the person in the firm who appears like a thin weakling and have avoided to call Haseeb Qureshi. If they will call Haseeb Qureshi to speak for this case, I am quite certain he can put this case upside down against the DOJ hehehehe.



Federal prosecutors could charge executives at crypto venture firm Dragonfly Capital in connection with its 2020 investment in Tornado Cash developer Peppersec Inc, an assistant US attorney reportedly said Friday.

That prompted a swift rebuke from one of the firm’s managing partners, who said the company stood by its investment and called the prospect “outrageous.”

“We made this investment because we believe in the importance of open-source privacy-preserving technology,” Managing Partner Haseeb Qureshi said on X on Friday.

“Charging a venture firm for a portfolio company’s alleged misconduct would be unprecedented.”

Attorneys for Tornado Cash co-founder Roman Storm want to call Dragonfly Managing Partner Tom Schmidt as a witness in Storm’s criminal trial, which began last week in New York.

But Schmidt, apparently facing the spectre of prosecution, has said he intends to invoke his Fifth Amendment right against self-incrimination, according to Storm’s attorneys.

“Are you looking at possibly prosecuting everyone at Dragonfly?” Judge Katherine Polk Failla asked federal prosecutor Thane Rehn on Friday during a back-and-forth over Schmidt’s potential testimony, according to a post from Inner City Press.

“Not everyone,” Rehn reportedly replied.

Read in full https://www.dlnews.com/articles/defi/tornado-cash-investor-slams-prosecutors-eyeing-new-charges/

[bbc.reporter]

These government prosecutors are headshaking. They want to make it appear to the jurors that Roman Storm is someone with a criminal mind and that he has created Tornado Cash with criminal intentions. They might also be making it appear like that many people in the cryptospace are supporters of privacy because we have something to hide.

I am quite certain that what I will say next is correct. The government, their backers and their friends want a monopoly on privacy. They do not want privacy for ordinary people who they might be considering as their slaves. If there is a threat on their monopoly on privacy, the will crackdown on this and attack their creators similar to what we have been witnessing on the crackdown against Tornado Cash and Samourai wallet.



Federal prosecutors told jurors that privacy was a mere “cover story” and a “distraction” during their closing argument in the criminal trial of Tornado Cash co-founder Roman Storm.

On Wednesday, both sides summed up two-and-a-half weeks of evidence that featured testimony from federal agents, blockchain experts, scammers, and scam victims, as well as a trove of private messages in which the Tornado Cash co-founders agonized over cybercriminals’ use of the protocol and what, if anything, they should do about it.

Storm’s fate now rests with a group of 12 jurors, who skew young and well-educated — 10 are younger than 50, and five are younger than 30. Nine have college degrees.

Read in full https://www.dlnews.com/articles/defi/storm-prosecutors-slam-privacy-defence-in-closing-arguments/

[arabspaceship123]

I'm waiting for the jury verdict. Roman Storm's lawyer's must've told him he's got a chance for pardon if he's found guilty. If the jury's going to return guilty verdicts he's got to appeal so it's going take months or years before it's over.

[bbc.reporter]

@arabspaceship123. I reckon that he might be found guilty on some charges like illegal money transmitting, however, on moneylaundering charges, this would certainly be very headshaking if the jury found him guilty of this. Is the owner of the bank a moneylaunderer if his bank is being used for moneylaundering?

The jury should also consider the values that the many of the members of the cryptospace follow and also the decentralization of Tornado Cash.

In any case, the verdict might be delivered after the first week of August. The decision of this jury will set an important precedent for the future of the cryptospace.

[arabspaceship123]

His lawyers have a good chance to get him freed when the jury's saying their decision. If Roman Storm's found guilty he'll appeal he won't accept the result if they're sending him to jail. I don't know what's going to happen if he's guilty of small charges which don't send him to jail.

@arabspaceship123. I reckon that he might be found guilty on some charges like illegal money transmitting, however, on moneylaundering charges, this would certainly be very headshaking if the jury fund him guilty of this. Is the owner of the bank a moneylaunderer if his bank is being used for moneylaundering?

The jury should also consider the values that the many of the members of the cryptospace follow and also the decentralization of Tornado Cash.

In any case, the verdict might be delivered after the first week of August. The decision of this jury will set an important precedent for the future of the cryptospace.

[OmegaStarScream]

This just came out: Roman storm has been found guilty and is now facing up to 5 years in prison[1][2].

A Manhattan jury has found Tornado Cash co-founder Roman Storm guilty of conspiracy to operate an unlicensed money-transmitting business, wrapping up a closely watched case that stirred debate over open-source software and crypto privacy tools.

The conviction carries a maximum sentence of five years in prison. A sentencing date has not yet been set.

[1] https://x.com/frankcorva/status/1953146306358055138
[2] https://financefeeds.com/tornado-cashs-roman-storm-found-guilty-faces-up-to-five-years/

[hugeblack]

This just came out: Roman storm has been found guilty and is now facing up to 5 years in prison[1][2].

So, he's not charged with money laundering (a more serious charge), and he'll serve less than two years in prison.
A good deal for him, but bad for the developers.
In general, it's a good not to have money laundering charges.

[bbc.reporter]

This just came out: Roman storm has been found guilty and is now facing up to 5 years in prison[1][2].

A Manhattan jury has found Tornado Cash co-founder Roman Storm guilty of conspiracy to operate an unlicensed money-transmitting business, wrapping up a closely watched case that stirred debate over open-source software and crypto privacy tools.

The conviction carries a maximum sentence of five years in prison. A sentencing date has not yet been set.

[1] https://x.com/frankcorva/status/1953146306358055138
[2] https://financefeeds.com/tornado-cashs-roman-storm-found-guilty-faces-up-to-five-years/

This is certainly what I have predicted hehehe. A guilty charge on illegal money transmitting but cannot be found guilty on moneylaundering. However, it is very headshaking that he has been found guilty of something that I reckon Fincen said it was not illegal for Tornado Cash hehehehe.

According to some information on social media, Roman Storm will appeal and continue to fight this case. His lawyers are saying go Roman heheheheheehheeheee.

[arabspaceship123]

The govt lawyers didn't want him to get bail but the judge didn't accept it. The judge said it's a long legal fight which Roman Storm's going to appeal & fight to clear his name so allowed his bail request.

This just came out: Roman storm has been found guilty and is now facing up to 5 years in prison[1][2].

[bbc.reporter]

This has shown that Roman has not agreed to become a government informant, not very much like the developers of Samourai wallet who the opensource privacy community and the cryptospace community should not now trust.

I am only speculating that they have become government informants, however, we have witnessed this before where detained people are tricked and forced to make deals with the government.

[arabspaceship123]

Roman Storm's going to fight his case in the court he's got a good lawyer who's defending him. I don't know what's happened to Samourai or it's devs you shouldn't say things about them if you don't know it's true.

This has shown that Roman has not agreed to become a government informant, not very much like the developers of Samourai wallet who the opensource privacy community and the cryptospace community should not now trust.

I am only speculating that they have become government informants, however, we have witnessed this before where detained people are tricked and forced to make deals with the government.

[NotATether]

This has shown that Roman has not agreed to become a government informant, not very much like the developers of Samourai wallet who the opensource privacy community and the cryptospace community should not now trust.

I am only speculating that they have become government informants, however, we have witnessed this before where detained people are tricked and forced to make deals with the government.

Very sad how the Samourai founders have basically gone from being vanguards of privacy..... to this.

And of course it is terrible that Roman Storm has been found guilty. So we hope that the appeal works out in his favor.