The trials of Samourai Wallet and Tornado Cash developers highlight potential legal challenges for the Bitcoin and crypto industry. Samourai Wallet's defendants accepted plea deals for unlicensed money services, while Tornado Cash's Roman Storm was convicted on similar charges. Both services operated under guidance from FINCEN, exempting those without control over user funds from regulation. Despite clearer guidance, the DOJ pursued charges, raising concerns about implications for developers in the broader tech landscape. Industry reaction remains cautious, as sentencing could have significant repercussions for privacy and innovation in the cryptocurrency sector.
The two defendants who developed Samourai Wallet made a plea deal accepting the charges of being an unlicensed money services business, while Roman Storm, developer of Tornado Cash, was found guilty on one of three charges.
Both of these companies were started after FINCEN had given clear guidance that services not controlling user funds were not subject to the regulations.
The DOJ's Sovereign Southern District of New York proceeded with the charges despite having clarity on the guidance as revealed by defense lawyers during the Tornado Cash trial.
The mixed verdicts have caused relief in the industry, yet the expected five years in sentencing for the defendants are nevertheless impactful.
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