Tornado Cash Founder Roman Storm Convicted by Jury

A Manhattan jury convicted Tornado Cash creator Roman Storm for conspiracy to operate an unlicensed money transmitter under federal law. After days of tense deliberation, jurors deadlocked on additional charges, unable to unanimously decide money laundering and sanctions evasion accusations.

Prosecutors accused Storm of facilitating over $1 billion in crypto money laundering via Tornado Cash for North Korea's Lazarus hackers. Storm’s defense countered vigorously, insisting the software was built exclusively for user privacy, not to shelter illicit funds for criminals.

Federal attorneys immediately requested Storm's remand to custody due to alleged foreign connections, signaling intentions for aggressive follow-up actions. Privacy advocates condemned the verdict, asserting it dangerously threatens the freedom of developers creating decentralized, peer-to-peer software.

Storm received vocal backing from Ethereum’s Vitalik Buterin and DeFi community leaders, who claim prosecutorial overreach endangers digital innovation. The Justice Department must now decide within days whether it intends to retry Storm on the unresolved money laundering accusations.

CZ Asks Court to Dismiss $1.76B FTX Lawsuit

Binance founder Changpeng Zhao has filed a motion in a US bankruptcy court to dismiss a $1.76 billion clawback suit filed by the FTX estate. Zhao argued that the Delaware court lacks jurisdiction over him due to his UAE residency and the cross-border nature of the transactions. He claims the complaint improperly extends US bankruptcy law to offshore dealings.

The case focuses on Binance’s 2021 equity sale to Sam Bankman-Fried, which FTX now alleges was conducted fraudulently. Zhao says Binance received crypto tokens in exchange for its exit from the FTX partnership and denies wrongdoing. With Bankman-Fried now serving a 25-year sentence and CZ recently released from prison, both figures remain central to the fallout of crypto’s biggest collapse.

Babylon Introduces Trustless Bitcoin Vaults Using BitVM3

Babylon has launched a trustless vault system for Bitcoin, allowing holders to stake BTC without depending on centralized custodians. The system relies on BitVM3, a framework enabling smart contracts on Bitcoin via off-chain computation and zero-knowledge proofs. These vaults can facilitate lending, stablecoin issuance, and staking to support PoS networks, with users rewarded in Babylon’s BABY token.

Existing Bitcoin bridges rely on intermediaries, but Babylon’s vaults enforce spending rules directly via smart contracts. The company said programmable vaults on external chains could unlock DeFi utility while preserving BTC’s security. Developers view this upgrade as a step toward integrating Bitcoin more seamlessly into cross-chain decentralized finance ecosystems.

Philippines Blocks Offshore Crypto Exchanges Over Licensing

The Philippine SEC has blocked access to 10 foreign crypto exchanges, including OKX, Bybit, and Kraken, citing lack of local registration. Internet users found their access restricted by major ISPs like PLDT, following the agency’s enforcement of June regulations requiring all platforms to register and disclose financial data. Officials warned more names could be added to the growing list of violators.

The crackdown has drawn criticism from crypto users accusing regulators of protecting domestic interests. GCash crypto head Luis Buenaventura said new users are most affected, prompting local apps to ramp up education efforts. Southeast Asia continues tightening crypto rules, with Thailand and Indonesia also moving against unregistered foreign operators.

Data of the Day

Binance recorded $2.55 trillion in crypto futures volume during July, its highest in six months, as sharp market moves revived trader activity. According to CryptoQuant, the exchange dominated more than half the global derivatives market, with daily volumes peaking at $134 billion. Competitors like Bybit and OKX saw $929 billion and $1.09 trillion, respectively, but remained far behind Binance.

Analysts say rising volatility in Bitcoin and altcoins fueled the activity, with open interest still high at $79 billion. Futures volumes typically signal growing institutional participation and help shape broader market direction. While momentum is strong, traders remain cautious of potential leverage unwinds following extreme build-ups in open positions.

More Breaking News

• Gryphon shareholders are voting on a proposed merger with American Bitcoin, a Trump-linked miner planning a Nasdaq listing under the ticker symbol ABTC.
• China’s security ministry warned that iris-scanning crypto projects like World could threaten national security through irreversible biometric data leaks and global data transfers.
• Crypto options data shows traders are hedging for Bitcoin to fall below $100,000 and Ethereum below $3,000 ahead of the August 29 expiry.
• Former Apple engineer Sid Gandhi launched the Payy Visa card to enable private stablecoin payments using cryptography and ZK-proofs without onchain exposure.
• PumpFun reclaimed its lead in daily token launches from LetsBonk, supported by a PUMP token buyback and increasing developer activity on Solana.
• Tokenized stocks surged 220 percent in July, echoing early DeFi growth as blockchain equity adoption rises and tokenized RWAs attract mainstream investor interest.
• Bitcoin treasury firm Satsuma raised $218 million in an oversubscribed convertible note round, accepting over 1,000 BTC from institutional investors across London.

For the latest updates on digital asset markets, follow us on X @Datawalletcom.