Storm faces up to 40 years in prison on charges of money laundering conspiracy, violating US sanctions, and running an unlicensed money-transmitting business. Prosecutors argued that Tornado Cash served as a laundering tool for cybercriminals, including North Korea’s Lazarus Group, while the defense pointed to Storm’s lack of criminal intent. Overall, the trial’s outcome could set a crucial precedent for the liability of software developers in decentralized finance and privacy-enhancing crypto tools.
Closing Arguments Wrap in Tornado Cash Case
Jurors in the Southern District of New York began deliberations in the high-profile trial of Roman Storm, co-founder of cryptocurrency mixing service Tornado Cash. The trial could set a major precedent with regards to the liability of software developers in decentralized systems, and concluded its closing arguments on Wednesday.
Prosecutors accused Storm of conspiring to launder money, violating US sanctions, and operating an unlicensed money-transmitting business. If found guilty, Storm faces up to 40 years in prison.
Assistant US Attorney Ben Gianforti characterized Tornado Cash as a tool that is primarily used for illegal activity, including helping North Korea’s Lazarus Group evade sanctions. Gianforti argued that Tornado Cash functioned as “a fancy online money launderer” and played a key role in obscuring funds tied to high-profile crypto hacks, including the KuCoin and Ronin incidents. According to the prosecution, $350 million was moved through the platform after sanctions were announced, and they painted Storm as an active conspirator in facilitating illicit financial flows.
The defense is led by attorney David Patton, and more focused on intent. They held firm that Storm never aimed to assist criminals. Patton compared Tornado Cash to other dual-use technologies that can serve both lawful users and bad actors. He insisted that simply knowing the platform could be misused is not equivalent to willful participation in criminal conduct. “Roman’s intent was entirely the opposite,” Patton said, and pointed out that Storm did not celebrate when learning that North Korean hackers exploited the service. He explained that a criminal conviction requires clear proof of willful intent, not just awareness of misuse.
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With the jury now tasked with determining Storm’s fate, the outcome of the trial may have sweeping implications for developers working on decentralized technologies in the US.
