rewrite this title with good SEO Tornado Cash Trial Concludes: Roman Storm Found Guilty On One Of Three Counts

Today in the Southern District of New York (SDNY), Tornado Cash co-founder Roman Storm was found guilty on the second count on his indictment, conspiracy to operate an unlicensed money transmitting business.

The jury did not come to a unanimous verdict on the other two counts — conspiracy to commit money laundering and conspiracy to violate sanctions.

The jury arrived at this guilty verdict after three and half days of deliberation and after a trial that began in the middle of last month.

As a result of the guilty verdict on the money transmission charge, Storm now faces up to five years in prison.

Judge Failla Rejects Motion To Remand Storm

In the wake of the verdict being issued, the prosecution made a motion to remand Storm into custody, claiming that he was a flight risk.

The defense’s Ms. Klein pushed back on the government’s assertion, stating that Storm had little reason to flee the United States, especially considering that his home in Washington state is tied up in a $2 million bail bond; that his daughter, of which he has partial custody, and girlfriend are based in the U.S. and his parents are green card holders; and that much of the crypto community that’s supported Storm is based in the U.S. and that they’ll hopefully continue to support Storm as he appeals the verdict.

The prosecution claimed that now that Storm has been convicted of a crime, he has more incentive to flee, but the judge wasn’t convinced.

She claimed that the “stability of the verdict is still in play” (likely referring to the notion that Storm will appeal the verdict), before adding that his “incentives have shifted tremendously” and then subsequently denying the prosecution’s motion to remand him.

U.S. Attorney for the SDNY Chimes In

Shortly after the verdict was issued, U.S. Attorney for the SDNY (and former U.S. Securities and Exchange Commission chair) Jay Clayton issued a statement on the verdict.

“Roman Storm and Tornado Cash provided a service for North Korean hackers and other criminals to move and hide more than $1 billion of dirty money,” said Clayton.

“The speed, efficiency, and functionality of stablecoins and other digital assets offer great promise, but that promise cannot be an excuse for criminality. Criminals who use new technology to commit age old crimes, including hiding dirty money, undermine the public trust, and unfairly cast a shadow on the many innovators who operate lawfully,” he added.

“This Office and our partner agencies are committed to holding accountable those who exploit emerging technologies to commit crime.”

Clayton did not acknowledge the memo issued by U.S. Deputy Attorney General Todd Blanche in which Blanche stated the U.S. Department of Justice will “stop participating in regulation by prosecution” in the crypto space and that it will no longer target virtual currency mixing services for the acts of their end users.

He also didn’t mention that the vast majority of funds that moved through Tornado Cash users weren’t proven to have been obtained illicitly.