Tornado Cash Developer Roman Storm Set for Jury Verdict After Closing Arguments in NY Trial

By Associated Press
Wednesday, October 23, 2024

After closing arguments were delivered Tuesday by both prosecution and defense teams, a jury in the Southern District of New York is set to begin deliberations in the trial of Roman Storm.

Storm, co-founder of the cryptocurrency mixing service Tornado Cash, faces charges of conspiracy to launder money, violating US sanctions, and operating without a license a money transmitting business.

If convicted, Storm could face up to 40 years in prison.

Prosecution Claims Developer Actively Participated in Illicit Activity

In his closing remarks, Assistant U.S. Attorney Ben Gianforti argued Storm was an active conspirator who enabled money laundering and technical violations like sanctions breaches, regardless of his explicit knowledge.

“Tornado Cash was a fancy online money launderer. The business was privacy for criminals,” Gianforti allegedly stated, urging the jury to find Storm guilty. He emphasized the intent of Tornado Cash’s developers.

“This is a simple story,” Gianforti said, according to Inner City Press. “Tornado Cash was a fancy online money launderer. The business was privacy for criminals. I urge you to use your common sense. Roman Storm is guilty. Thank you.”

Gianforti’s argument highlighted Tornado Cash’s continued use after major security incidents like the Ronin hack, allegedly transferring funds “from a sanctioned Lazarus wallet” following sanctions announcements.

Defense Argues Developer’s Intent Crucial, Avoided Criminal Use

Tornado Cash’s defense attorney, David Patton, highlighted Storm’s intent as the central issue. He noted the unique arguments related to decentralized finance (DeFi).

Patton contended that Storm’s intent was purely defensive. “Roman Storm did not want hackers using Tornado Cash,” he allegedly argued. “They did not celebrate when they learned about North Koreans’ hackers using it.” The defense stressed that mere usage by criminals doesn’t automatically establish unlawful intent by the creator.

“This is not a civil negligence case,” Patton said.

“There has to be willful intent, for good reasons.”

The judge provided final jury instructions before the deliberations were set to begin.

Case Context and Potential Precedent

The case is being closely watched within the crypto sphere and legal system. It raises significant questions about the liability of software developers for decentralized applications (dApps) whose technology might be repurposed for illicit activities, particularly regarding financial regulations and sanctions.

The verdict is now dependent on the jury’s deliberations.

Inner City Press
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