Trump Regulators Declare War on Crypto Privacy Software

Federal prosecutors are ramping up their war on crypto privacy tools — notching a courtroom partial win against Tornado Cash co-founder Roman Storm and a major settlement with the founders of Samourai Wallet — and sending a message that developers writing open-source code are now fair game for prosecution under the Trump DOJ.

What’s the Scoop?

• Storm Verdict: Tornado Cash co-founder Roman Storm was convicted of operating an unlicensed money transmission business after a four-week trial.
• Samourai Guilty Pleas: Samourai Wallet’s Keonne Rodriguez and William Hill pled guilty to similar charges, admitting they built tools used by criminals. The plea deal includes a staggering $237 million forfeiture.
• Targeting Tech: Prosecutors took aim at open-source mixing tools designed to enhance Bitcoin privacy. Officials cast the very concept of coin mixing as criminal.
• Show of Force: U.S. Attorney and former SEC chair Jay Clayton praised the outcome as a victory over crypto criminals: “Roman Storm and Tornado Cash provided a service for North Korean hackers and other criminals to move and hide more than $1 billion of dirty money,” said Clayton.  “The speed, efficiency, and functionality of stablecoins and other digital assets offer great promise, but that promise cannot be an excuse for criminality.”