⚖️ Roman Storm Convicted — Crypto Privacy and Dev Rights on the Line
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Tornado Cash co-founder Roman Storm has been convicted of operating an unlicensed money-transmitting business — and the crypto world is sounding the alarm.
Why this matters:
Storm’s conviction could set a dangerous legal precedent for open-source developers, especially those building non-custodial privacy tools.🧑
What is Tornado Cash?
A decentralized, open-source protocol launched in 2019 to protect transaction privacy by breaking onchain links between wallets.
It never held custody over user funds — but prosecutors say Storm was still liable for how others used it.️ The charges:
✅ Guilty: Operating an unlicensed money transmission business ❌ Hung jury: Money laundering conspiracy ❌ Hung jury: Violating U.S. sanctions
Prosecutors may retry the hung charges. Storm now faces up to 5 years in prison.
Crypto leaders are pushing back:
Blockchain Association: “This ruling misapplies money transmitter laws and criminalizes developers of neutral tools.” Solana Policy Institute: “Dev liability for open-source, non-custodial code = a fundamental misunderstanding of DeFi.” Crypto Council for Innovation: “An appeal is necessary — we need clear legislation, not prosecution-as-policy.”
The crypto lobby is now urging the Trump administration and Congress to pass the CLARITY Act, to protect devs and define what is (and isn’t) a money transmitter in DeFi.
As policy attorney Andrew Rossow puts it:
“This isn’t just about a man or a mixer — it’s a referendum on individual agency in the age of open-source code.”
Meanwhile, the Ethereum Foundation pledged $500K in legal support, stating:
“Privacy is normal. Writing code is not a crime.”
🧠 The big question: Should creators of decentralized tools be punished for how others use them?
This case could define the future of crypto privacy, developer freedom, and DeFi innovation in the U.S.Stay tuned — this fight is far from over.
#CryptoLaw #TornadoCash #RomanStorm #OpenSource #DeFi #PrivacyRights #Web3Policy #Ethereum