Roman Storm, co-founder of the cryptocurrency mixer Tornado Cash, has been convicted for conspiring to operate an unlicensed money transmitting business that processed over $1 billion in criminal proceeds. The verdict was delivered after a four-week jury trial before U.S. District Judge Katherine Polk Failla in New York.
U.S. Attorney for the Southern District of New York, Jay Clayton, stated: “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. 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. This Office and our partner agencies are committed to holding accountable those who exploit emerging technologies to commit crime.”
According to court documents and evidence presented at trial, Storm was one of three founders behind Tornado Cash. The platform allowed users to make untraceable transfers of cryptocurrency by mixing transactions together. Storm and his partners developed key features of the service, funded its infrastructure, promoted it publicly as offering anonymous financial transactions, and earned millions from its operation.
Evidence showed that Storm was aware that criminals were using Tornado Cash to transfer illicit funds totaling more than $1 billion. These transactions included proceeds from various cybercrimes such as the Ronin hack—a theft attributed by the FBI to North Korea’s Lazarus Group—where hundreds of millions in hacked funds were laundered through Tornado Cash even after public attribution.
Storm continued operating the business with knowledge that it was being used for illegal activity. He and his co-founders reportedly cashed out over $12 million in profits from their activities.
Storm faces a maximum sentence of five years in prison for conspiracy to operate an unlicensed money transmitting business; however, sentencing will ultimately be determined by the judge.
The investigation involved both the FBI and Internal Revenue Service-Criminal Investigations units. The prosecution is led by Assistant U.S. Attorneys Thane Rehn, Benjamin A. Gianforti, Ben Arad, Special Assistant U.S. Attorney Kevin Mosley, with support from Paralegal Specialists Olivia Sebade and Dean Iannuzzelli.
