TLDR:
- Roman Storm found guilty of conspiracy to run an unlicensed money-transmitting business.
- Tornado Cash laundered $1B, including funds from North Korea’s Lazarus Group.
- DOJ says Storm helped promote and maintain Tornado Cash even after sanctions warnings.
- Verdict signals tougher U.S. enforcement on crypto tools used for illicit finance.
Roman Storm has been convicted. The U.S. Department of Justice said he knowingly ran a crypto mixer that moved over $1 billion in criminal funds. That includes money from cyberattacks tied to North Korea.
Authorities say he didn’t just build Tornado Cash; he helped keep it running while the crime piled up. Now, he faces serious time behind bars.
Tornado Cash Wasn’t Just a Tool; It Was a Business
The feds say Storm didn’t stumble into crime. He helped design Tornado Cash from the ground up. It was built to let users move crypto anonymously. That meant bad actors: hackers, fraudsters, and even sanctioned groups could wash dirty money without a trace.
According to the DOJ, Storm and his partners didn’t just walk away. They stayed involved, funded the infrastructure, and promoted the service. Tornado Cash wasn’t open-source freedom; it was a revenue stream. Prosecutors said the team pulled in over $12 million before getting caught.
That’s where things got serious. The platform helped launder funds from the infamous Ronin hack, one of the largest in crypto history. The FBI had already linked the theft to the Lazarus Group, a North Korean cybercrime gang.
Despite public warnings, Storm continued operations. He let funds from that hack keep flowing through Tornado Cash. The DOJ said he didn’t just ignore the red flags; he knew what was happening and chose to keep the system live.
Crypto Is Moving Fast, But So Are the Lawmakers
U.S. Attorney Jay Clayton said tech won’t excuse crime. He pointed out that stablecoins and other digital tools show promise. But if they’re used to hide stolen money, that promise fades.
In court, the jury didn’t hesitate. After a four-week trial, Storm was found guilty of conspiracy to operate an unlicensed money-transmitting business. That charge carries up to five years in federal prison.
This case sets a precedent. Regulators and law enforcement aren’t just watching; they’re acting. If you’re in crypto and building tools, they want you to know: responsibility doesn’t stop at launch.
The prosecution credited the FBI and IRS criminal investigators. Their work helped unravel a network that processed over $1 billion in dirty crypto.
Crypto isn’t lawless anymore. And Storm’s conviction sends that message loud and clear.
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Source: https://blockonomi.com/tornado-cash-co-founder-goes-down-for-1b-crypto-crime-ring/