Developer of Tornado Cash, Roman Storm, was found guilty of running an unlicensed money service business, significantly affecting the TORN token's price.
Guilty Verdict and Consequences
Roman Storm, a developer and co-founder of Tornado Cash, has been found guilty of operating an unlicensed money transmittal business. The verdict came from a federal jury in Manhattan on August 6, following four days of deliberations. The court reached a decision on one felony charge, but the jury did not reach agreement on two other charges related to money laundering and sanctions violations. Storm now faces a sentence that could reach up to five years in prison.
Price Decline of TORN
Notably, the price of Tornado Cash (TORN) dropped about 15% following the verdict. The token was trading at $10.3 at press time, with a 24-hour trading volume of roughly $1.7 million. It has lost nearly 18% in one day and around 24% over the past week. Before the decision, analyst Papa Wheelie suggested the token could dip if there was a guilty verdict, noting that while downside was likely in that case, he expected the protocol itself to stay active and could recover in time.
Increase in Network Activity
The number of active addresses on the Tornado Cash network rose sharply on August 6, reaching 173. This marked the highest level in the past month. It came as the price dropped below $10. For most of July, the count stayed between 60 and 120 addresses. The spike in activity may be linked to users moving funds in response to the legal outcome, likely reflecting increased caution rather than new demand.
The court's verdict in Roman Storm's case has had a significant impact on the market, resulting in both the price drop of the TORN token and increased user activity on the platform. The repercussions of this event are expected to continue influencing trading metrics and perceptions of the platform.
