Tornado Cash Co-Founder Found Guilty But Avoids Worst Counts

A co-founder of Tornado Cash was convicted of conspiring to run an unlicensed money-transfer operation, while avoiding more serious charges that could have subjected him to decades in prison, in a closely watched case with sweeping implications for open-source development and blockchain privacy.

Roman Storm was found guilty Wednesday of a single charge of conspiracy by a Manhattan jury, who were unable to reach a verdict on two other counts. The outcome was a partial victory for federal prosecutors who had alleged that Storm helped cybercriminals — including a group linked to the North Korean government — launder stolen crypto through Tornado Cash, which they described as a “giant washing machine” for illicit funds.