Deadlock in Tornado Cash Founder Case: Jury Split on Money Laundering Charges

A U.S. jury reached an impasse on Wednesday concerning money laundering and sanctions evasion charges levied against Roman Storm, the founder of Tornado Cash. The firm, designed to obscure cryptocurrency transactions, faces allegations of laundering proceeds from hacks, notably those linked to a North Korean group. Though acquitted of the most severe charges, Storm was convicted of a lesser charge of conspiracy to run an unlicensed money transmitting business, carrying a potential five-year sentence, pending his hearing before Judge Katherine Failla.

The trial highlighted accusations that Storm's Tornado Cash facilitated transactions for the Lazarus Group, known for cybercriminal activities in support of North Korea. Despite pleas of innocence to all felony charges, Storm faced mounting pressure through prosecution claims suggesting his business motives were fueled by greed. Defense attorney David Patton argued that Storm built Tornado Cash without the intent to aid illicit activities, emphasizing the software's primary function as privacy protection.

Prosecutor Benjamin Gianforti contended that Storm repeatedly ignored warnings about Tornado Cash's criminal usage from 2020 to 2022, suggesting the firm's privacy emphasis masked its true intent. With the Treasury twice reversing sanctions on Tornado Cash amidst political transitions, the case underscores ongoing regulatory and legal challenges in the cryptocurrency sector. In related consequences, a Tornado Cash developer, Alexey Pertsev, was previously sentenced in the Netherlands, drawing international focus on crypto regulation.

(With inputs from agencies.)