On August 7, 2025, Roman Storm, co-founder of Tornado Cash, was found guilty of operating an unlicensed money transmitting business, leading to a significant drop in TORN's price.
Impact of Roman Storm's Verdict
Roman Storm, a prominent Tornado Cash developer, was found guilty of running an unlicensed money transmitting business. This verdict sparked a strong market reaction.
Market Reaction to TORN's Drop
Following the verdict, TORN's price fell by nearly 17%. Trading volumes surged dramatically, indicating a panic sell-off driven by the verdict. As a result, the token's price dropped to $10.38, losing 23% over the week.
The Future of Tornado Cash
Investors distanced themselves from the project post-verdict. History shows that similar law enforcement actions against privacy protocol developers often lead to low liquidity and prolonged price depression. Uncertainty lingers without major updates from Tornado Cash leadership, and the absence of guidance from key figures like Vitalik Buterin adds to the current atmosphere of risk aversion.
Roman Storm's verdict serves as a significant event for developers of privacy protocols, highlighting growing concerns regarding regulation in this area.
