# Tornado Cash Co-Founder Convicted of Unlicensed Money Business ▴ News

**Published:** 2025-08-07
**Categories:** News

---

The conviction of Roman Storm, a Tornado Cash co-founder, for operating an [unlicensed money transmittal business](https://prime.greeks.live/question/what-are-the-liquidity-differences-between-a-btc-straddle-block-at-the-money-vs-out-of-the-money/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) establishes a significant [legal precedent](https://prime.greeks.live/area/legal-precedent/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) for decentralized applications. This ruling directly impacts the systemic understanding of developer liability within the digital asset ecosystem. It necessitates a re-evaluation of the design principles for privacy-enhancing protocols, shifting the focus towards inherent compliance mechanisms.

The immediate consequence is heightened regulatory scrutiny across the DeFi landscape, particularly for services that facilitate anonymized transactions. This outcome will likely drive innovation towards verifiable privacy solutions that integrate legal adherence at their architectural core.

The Tornado Cash verdict profoundly alters the risk matrix for [decentralized finance](https://prime.greeks.live/area/decentralized-finance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), emphasizing developer accountability for protocol utility.

- **Verdict** ▴ Guilty of [unlicensed money transmittal](https://prime.greeks.live/area/unlicensed-money-transmittal/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) business

- **Primary Actor** ▴ Roman Storm

- **Potential Sentence** ▴ Up to five years in prison

Signal Acquired from ▴ <a href="https://cointelegraph.com/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" target="_blank" rel="nofollow">Cointelegraph</a> 

![The image displays a sleek, intersecting mechanism atop a foundational blue sphere. It represents the intricate market microstructure of institutional digital asset derivatives trading, facilitating RFQ protocols for block trades](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-rfq-execution.jpg)

![Sleek, metallic form with precise lines represents a robust Institutional Grade Prime RFQ for Digital Asset Derivatives. The prominent, reflective blue dome symbolizes an Intelligence Layer for Price Discovery and Market Microstructure visibility, enabling High-Fidelity Execution via RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/08/prime-os-rfq-protocol-high-fidelity-digital-asset-derivatives-engine.jpg)

## Glossary

<a href="https://prime.greeks.live/question/what-are-the-liquidity-differences-between-a-btc-straddle-block-at-the-money-vs-out-of-the-money/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Central, interlocked mechanical structures symbolize a sophisticated Crypto Derivatives OS driving institutional RFQ protocol. Surrounding blades represent diverse liquidity pools and multi-leg spread components](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-architecture-optimizing-high-fidelity-execution-across-diverse-liquidity-pools.jpg)

## Unlicensed Money Transmittal Business

ATM straddle blocks offer deep liquidity at tight spreads due to simple delta hedging, while OTM blocks have shallower, costlier liquidity. </a><a href="https://prime.greeks.live/area/legal-precedent/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precisely engineered multi-component structure, split to reveal its granular core, symbolizes the complex market microstructure of institutional digital asset derivatives. This visual metaphor represents the unbundling of multi-leg spreads, facilitating transparent price discovery and high-fidelity execution via RFQ protocols within a Principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-rfq-protocols-revealing-market-microstructure-for-high-fidelity-execution-and-atomic-settlement-within-principals-operational-framework.jpg)

## Legal Precedent

Meaning ▴ Legal precedent establishes a foundational principle within common law jurisdictions, mandating that prior judicial decisions serve as authoritative guides for subsequent cases presenting similar material facts. </a><a href="https://prime.greeks.live/area/decentralized-finance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Internal mechanism with translucent green guide, dark components. Represents Market Microstructure of Institutional Grade Crypto Derivatives OS](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-crypto-derivatives-rfq-engine-for-high-fidelity-execution.jpg)

## Decentralized Finance

Meaning ▴ Decentralized Finance, or DeFi, refers to an emergent financial ecosystem built upon public blockchain networks, primarily Ethereum, which enables the provision of financial services without reliance on centralized intermediaries. </a><a href="https://prime.greeks.live/area/unlicensed-money-transmittal/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An intricate, transparent cylindrical system depicts a sophisticated RFQ protocol for digital asset derivatives. Internal glowing elements signify high-fidelity execution and algorithmic trading](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-protocol-architecture.jpg)

## Unlicensed Money Transmittal

Meaning ▴ Unlicensed Money Transmittal refers to the operation of a money transmission business without obtaining the requisite licenses or registrations from governmental authorities. </a>

**Tags:** [Unlicensed Money Transmittal](https://options.greeks.live/area/unlicensed-money-transmittal/), [Judicial Precedent](https://options.greeks.live/area/judicial-precedent/), [Regulatory Oversight](https://options.greeks.live/area/regulatory-oversight/), [Legal Precedent](https://options.greeks.live/area/legal-precedent/), [Decentralized Finance](https://options.greeks.live/area/decentralized-finance/), [Privacy Protocols](https://options.greeks.live/area/privacy-protocols/)	

## Discover More

- 
### [Nasdaq Intensifies Oversight of Crypto Treasury Initiatives](https://options.greeks.live/news/nasdaq-intensifies-oversight-of-crypto-treasury-initiatives/)
![A gold-hued precision instrument with a dark, sharp interface engages a complex circuit board, symbolizing high-fidelity execution within institutional market microstructure. This visual metaphor represents a sophisticated RFQ protocol facilitating private quotation and atomic settlement for digital asset derivatives, optimizing capital efficiency and mitigating counterparty risk.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-grade-precision-execution-engine-optimizing-digital-asset-derivatives-rfq-protocols-within-market-microstructure.jpg)

This regulatory evolution by Nasdaq strengthens market integrity, establishing a robust framework for institutional engagement with digital assets and enhancing transparency for investors.

- 
### [Federal Reserve Rate Cut Signals Imminent Crypto Liquidity Shift](https://options.greeks.live/news/federal-reserve-rate-cut-signals-imminent-crypto-liquidity-shift/)
![An abstract institutional-grade RFQ protocol market microstructure visualization. Distinct execution streams intersect on a capital efficiency pivot, symbolizing block trade price discovery within a Prime RFQ. Adjacent liquidity pools and digital asset derivatives underscore high-fidelity execution.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-optimized-microstructure.jpg)

A dovish Federal Reserve pivot creates systemic tailwinds, architecting a capital rotation into higher-beta digital asset ecosystems.

- 
### [Justin Sun Denies WLFI Blacklisting; Ethereum Whale Moves $646 Million](https://options.greeks.live/news/justin-sun-denies-wlfi-blacklisting-ethereum-whale-moves-646-million/)
![Precision-engineered beige and teal conduits intersect against a dark void, symbolizing a Prime RFQ protocol interface. Transparent structural elements suggest multi-leg spread connectivity and high-fidelity execution pathways for institutional digital asset derivatives. This visual emphasizes atomic settlement, capital efficiency, and market microstructure dynamics for price discovery.](https://options.greeks.live/wp-content/uploads/2025/07/insti-grade-digital-asset-derivatives-rfq-protocols-multi-leg-execution-junction.jpg)

These events highlight critical market structure vulnerabilities and strategic capital movements shaping the digital asset ecosystem.

- 
### [France Threatens Crypto License Passporting in EU Regulatory Dispute](https://options.greeks.live/news/france-threatens-crypto-license-passporting-in-eu-regulatory-dispute/)
![Luminous central hub intersecting two sleek, symmetrical pathways, symbolizing a Principal's operational framework for institutional digital asset derivatives. Represents a liquidity pool facilitating atomic settlement via RFQ protocol streams for multi-leg spread execution, ensuring high-fidelity execution within a Crypto Derivatives OS.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-pathways-optimized.jpg)

France signals potential rejection of cross-border crypto licenses, asserting national oversight to fortify market integrity under MiCA.

- 
### [Google Launches Open Protocol for Autonomous AI Financial Transactions](https://options.greeks.live/news/google-launches-open-protocol-for-autonomous-ai-financial-transactions/)
![A sleek, open system showcases modular architecture, embodying an institutional-grade Prime RFQ for digital asset derivatives. Distinct internal components signify liquidity pools and multi-leg spread capabilities, ensuring high-fidelity execution via RFQ protocols for price discovery.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-modularity-unveiled.jpg)

Systematizing AI agent commerce via an open payment protocol unlocks autonomous, high-frequency value exchange at enterprise scale.

- 
### [Google Unveils AI-to-AI Payment Protocol with Stablecoin Support](https://options.greeks.live/news/google-unveils-ai-to-ai-payment-protocol-with-stablecoin-support/)
![A sophisticated internal mechanism of a split sphere reveals the core of an institutional-grade RFQ protocol. Polished surfaces reflect intricate components, symbolizing high-fidelity execution and price discovery within digital asset derivatives. This architecture supports multi-leg spreads and atomic settlement for block trades on a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-system.jpg)

This protocol enables autonomous AI transactions, integrating digital assets into a robust financial infrastructure for enhanced operational efficiency.

- 
### [V Global Accomplices Receive Suspended Sentences in $1.4b Crypto Fraud](https://options.greeks.live/news/v-global-accomplices-receive-suspended-sentences-in-1-4b-crypto-fraud/)
![A precision-engineered system with a central gnomon-like structure and suspended sphere. This signifies high-fidelity execution for digital asset derivatives. Intricate disc patterns denote volatility surface and algorithmic trading. Teal elements represent liquidity pools and Prime RFQ facilitating atomic settlement via RFQ protocol.](https://options.greeks.live/wp-content/uploads/2025/07/precision-engine-for-institutional-digital-asset-derivatives-rfq.jpg)

This legal resolution for a major crypto fraud case underscores the imperative for robust regulatory frameworks and secure platform due diligence within the digital asset ecosystem.

- 
### [How Does Consolidated Audit Trail Data Enhance Detection of Algorithmic Manipulation beyond Quote Fading?](https://options.greeks.live/question/how-does-consolidated-audit-trail-data-enhance-detection-of-algorithmic-manipulation-beyond-quote-fading/)
![A precisely engineered multi-component structure, split to reveal its granular core, symbolizes the complex market microstructure of institutional digital asset derivatives. This visual metaphor represents the unbundling of multi-leg spreads, facilitating transparent price discovery and high-fidelity execution via RFQ protocols within a Principal's operational framework.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-rfq-protocols-revealing-market-microstructure-for-high-fidelity-execution-and-atomic-settlement-within-principals-operational-framework.jpg)

CAT data provides granular order lifecycle visibility, enabling sophisticated detection of algorithmic manipulation beyond simple quote fading through comprehensive pattern analysis.

- 
### [Institutional Bitcoin Accumulation Accelerates amid Shifting Market Dynamics](https://options.greeks.live/news/institutional-bitcoin-accumulation-accelerates-amid-shifting-market-dynamics/)
![A multi-segmented sphere symbolizes institutional digital asset derivatives. One quadrant shows a dynamic implied volatility surface. Others represent RFQ protocols, principal capital, and aggregated liquidity pools for high-fidelity execution of Bitcoin options.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-liquidity-management.jpg)

Strategic corporate treasury deployments and regulatory advancements define a new phase of digital asset integration, enhancing market robustness and capital efficiency for sophisticated principals.

---

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---

**Original URL:** https://options.greeks.live/news/tornado-cash-co-founder-convicted-of-unlicensed-money-business/
