A senior IcomTech promoter, Magdaleno Mendoza, was sentenced to 71 months in prison in the U.S. and ordered to pay $789,218.94 in restitution, forfeit about $1.5 million, and surrender a California home tied to the alleged crypto Ponzi scheme.

A U.S. court sentenced IcomTech promoter Magdaleno Mendoza to 71 months in prison over a crypto Ponzi scheme targeting Spanish-speaking investors. He was also ordered to pay $789,218.94 in restitution and forfeit about $1.5 million and a California home.

Magdaleno Mendoza, a promoter of the IcomTech crypto Ponzi scheme, was sentenced to 71 months in prison, ordered to pay $789,218 in restitution and forfeit his California home. The case highlights targeting of Spanish-speaking investors and raises concerns about immigrant community financial protections.

A federal jury in the Southern District of New York reached a split outcome in the criminal case against Tornado Cash co-founder Roman Storm. He was found guilty on one of the three charges in his indictment: conspiracy to operate an unlicensed money transmitting business. The jury did not reach a unanimous verdict on the other two counts, conspiracy to commit money laundering and conspiracy to violate sanctions. After three and a half days of deliberation following a trial that began in the middle of last month, the result leaves Storm facing up to five years in prison on the count of conviction, while also preserving major legal disputes for appeal and broader policy debate. The article also covers the immediate post-verdict battle over custody. Prosecutors argued that Storm had become a flight risk after conviction and asked the court to remand him. His defense countered with detailed ties to the United States, including a Washington state home tied to a $2 million bail bond, his daughter, girlfriend, and parents with green card status. Judge Failla ultimately denied the motion to remand, noting that the stability of the verdict remained in play. Beyond procedure, the case has become a flashpoint for the crypto industry. SDNY U.S. Attorney Jay Clayton framed Tornado Cash as a service used by North Korean hackers and other criminals to move and conceal more than $1 billion in illicit funds. At the same time, critics point to the Justice Department’s stated intent to stop “regulation by prosecution” in crypto and note that most funds flowing through Tornado Cash were not proven to be illicit. The result is a case that sits at the intersection of privacy tools, sanctions enforcement, anti-money laundering rules, and developer liability.

A jury in the U.S. District Court for the Southern District of New York delivered a split outcome in the criminal case against Tornado Cash co-founder Roman Storm. Storm was found guilty on one count, conspiracy to operate an unlicensed money transmitting business, while jurors failed to reach a unanimous verdict on the other two charges: conspiracy to commit money laundering and conspiracy to violate sanctions. After three and a half days of deliberations following a trial that began in the middle of last month, the verdict leaves Storm facing a maximum prison sentence of five years on the count of conviction. Immediately after the ruling, prosecutors asked the court to remand Storm into custody, arguing that his new status as a convicted defendant increased his flight risk. Defense counsel Ms. Klein responded that Storm had deep personal and financial ties to the United States, including a home in Washington state tied to a $2 million bail bond, partial custody of his daughter, a girlfriend based in the U.S., and parents who are green card holders. Judge Failla ultimately denied the prosecution’s request, noting that the stability of the verdict remained in play, an apparent reference to the likelihood of an appeal. SDNY U.S. Attorney Jay Clayton then issued a statement accusing Storm and Tornado Cash of helping North Korean hackers and other criminals move and conceal more than $1 billion in illicit funds. He argued that the promise of stablecoins and digital assets cannot excuse criminal conduct. However, his statement did not address Deputy Attorney General Todd Blanche’s memo stating that the Department of Justice would stop engaging in “regulation by prosecution” in crypto and would no longer target virtual currency mixing services for the acts of end users. It also did not note that most funds processed through Tornado Cash were not proven to be illicit.

A jury in the Southern District of New York found Tornado Cash co-founder Roman Storm guilty of conspiracy to operate an unlicensed money transmitting business, while failing to reach a unanimous verdict on money laundering and sanctions conspiracy charges. Storm now faces up to five years in prison. Judge Failla rejected the prosecution's motion to remand Storm, citing the instability of the verdict and Storm's strong ties to the U.S. U.S. Attorney Jay Clayton issued a statement criticizing the service for allegedly helping North Korean hackers launder over $1 billion, but did not acknowledge a recent DOJ memo urging an end to regulation-by-prosecution in crypto or the fact that most funds through Tornado Cash were not proven illicit. The case has sparked debate over legal liability for crypto mixing services.

Trump has nominated former SEC Chair Jay Clayton to serve as Director of National Intelligence, replacing Tulsi Gabbard, who is set to leave on June 30, 2026, according to CryptoBriefing.