Tornado Cash co-founder convicted for unlicensed money business operations

Popular cryptocurrency mixing service Tornado Cash which was sanctioned by the U.S. Treasury Department over its alleged involvement in the laundering of illicit funds tied to cybercriminal operations had its co-founder Roman Storm, who developed the platform's privacy software, found guilty of having conspired to operate a money-transmitting business without license, which amounts to up to five years imprisonment, while avoiding up to 40 years of jail time due to the jury's failure to decide on his money laundering and sanctions charges, according to The Record, a news site by cybersecurity firm Recorded Future.

Such a development comes after the prosecution decided to nail down Storm's leadership of an unlicensed money transmitting business involving criminal activity-related fund transmission. Meanwhile, the Blockchain Association has urged for an appeal. "The Trump administration has set out to enhance legal and regulatory clarity and protect American innovation. We therefore urge the Trump administration to act swiftly to end the Biden-era approach of 'regulation by prosecution' by declining to re-prosecute," said Blockchain Association senior counsel Laura Sanders.