Tornado Cash Founder Don Convicted for Unlicensed Money Service
Tornado Cash co-founder Roman Storm don convic by US federal jury for Di Southern District of New York for dey run unlicensed money transmitting service, but di jurors dem deadlock on charge of conspiracy to commit money laundering and for violate North Korea sanctions. Di 2023 DOJ lawsuit, wey Judge Katherine Polk Failla dey oversee, claim say Storm protocol facilitate laundering over $1 billion—including money wey concern North Korea’s Lazarus Group. Prosecutors talk say Storm sabi dey make profit from illegal use of Tornado Cash; Storm defense deny say dem get plan to help any criminal activity. Di split verdict show di kind risk wey DeFi developers wey dey run unlicensed money transmitting service dey face, and DOJ talk say fit refile di unresolved money laundering and sanctions charge dem. Legal experts warn say dis case mean say plenty federal risk dey for privacy-focused protocols, and DeFi Education Fund talk say non-custodial developers no suppose dey treated as money services businesses.
Bearish
Di conviction wey dem get for run unlicensed moni transmittin service, plus di deadlock for money laundering and sanctions charges, don increase legal wahala for Tornado Cash. For short term, users and liquidity providers fit withdraw dia moni to avoid regulatory risk, wey go reduce activity for di protocol. For long term, if dem fit file di case again plus di broad federal check wey dem dey do for privacy-focused DeFi projects fit make new users and developers fear to join, e fit spoil growth and innovation. Dis kain legal pressure go for weaken market confidence and usage, wey go bring bearish outlook for Tornado Cash.