A judge in the Southern District of New York granted a delay in the criminal case against Tornado Cash co-founder Roman Storm, pushing back the next phase of a prosecution that has already become one of the most closely watched crypto cases in the U.S. The case centers on allegations that Storm helped operate Tornado Cash, a cryptocurrency mixing service that prosecutors say was used to launder more than $1 billion in criminal proceeds and facilitate sanctions evasion. Storm was previously tried in federal court before Judge Katherine Polk Failla. A jury convicted him on one count of conspiracy to operate an unlicensed money transmitting business, while deadlocking on the more serious money laundering and sanctions-related counts, leaving those charges unresolved. The delay matters because the case has become a test of whether software developers can face criminal liability for building and maintaining open-source privacy tools, and it could influence how U.S. courts and regulators treat decentralized finance and mixer protocols going forward.

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