Jay Clayton’s Statement on Roman Storm’s Conviction
In a recent public statement, former Chair of the U.S. Securities and Exchange Commission and acting U.S. Attorney for the Southern District of New York, Jay Clayton, reacted to the conviction of Roman Storm, a developer associated with Tornado Cash. This statement, made on August 6, emphasized the commitment of his office to pursue those who misuse evolving technologies for illicit purposes.
“Roman Storm and Tornado Cash facilitated North Korean hackers and various criminals in laundering over $1 billion in illicit funds.”
Clayton further explained that while the potential of stablecoins and cryptocurrencies is significant, it should not be used as justification for illegal activities.
“Using innovative technology for traditional crimes, including money laundering, erodes public trust and casts a negative light on legitimate innovators in the field.”
Details of the Conviction
Storm was recently convicted on one count of operating an unlicensed money transmitting operation. However, the jury could not agree on another charge related to conspiracy for money laundering and sanctions violations, resulting in a partial mistrial. As it stands, he faces a potential five-year prison sentence for the conviction, though a date for his sentencing still remains unannounced.
Implications of the Tornado Cash Technology
The indictment of Storm and his colleague, Roman Semenov, in August 2023 raised significant questions about whether the Tornado Cash technology serves merely as a privacy enhancement or is being exploited for darker purposes. Ahead of his trial, Storm had gained considerable backing from advocates for crypto privacy, framing his legal struggles as a fight for fairness, open-source innovation, and personal freedom.
His defense fund has reportedly amassed over $4.7 million, approaching the $5 million target set for his legal battle, as highlighted by his supporters on the Free Roman Storm website.
