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Partial Mistrial in Tornado Cash Court Verdict

By James Rundle

 

Good day. A jury in Manhattan reached a split verdict Wednesday in the trial of Roman Storm, a co-founder of cryptocurrency mixer Tornado Cash.

Storm was found guilty in a New York federal court of conspiracy to operate an unlicensed money transmitter, but dodged conviction on two other charges—conspiracy to commit money laundering, and conspiracy to violate U.S. sanctions—on which the jury was deadlocked.

The trial stems from an incident in 2023, when North Korean cybercriminals robbed an online game and proceeded to launder $500 million of the proceeds through the mixer, a service that obscures the origin of cryptocurrency by blending multiple transactions, making it harder to trace funds.

While Storm has evaded the two most serious charges, each of which carries a potential 20-year prison sentence, he could still face up to five years for the charge he was convicted of. Read our article.

Also today:

  • Pandora discloses a data breach.
  • Clashes over CISA.
  • False Claims Act fines.
 

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Government & Regulation

Rob Joyce, former NSA cybersecurity chief. PHOTO: HECTOR MARTINEZ/FORDHAM UNIVERSITY

Current and Former Officials Clash Over CISA. Cybersecurity and Infrastructure Security Agency spokeswoman Marci McCarthy defended narrowing the agency’s scope and reducing its workforce at the Black Hat conference, saying the focus is now on its “core mission.” Former National Security Agency cybersecurity chief Rob Joyce disagreed, warning that cutting federal cyber staff and expertise amid heightened threats from nation-state actors could seriously weaken U.S. cyber defenses. (NextGov)

PHOTO: ASSOCIATED PRESS

Homeland Security Cyber Grants Exclude ISACs. The federal grant program for state and local governments prohibits recipients from using funds for services provided by the Multi-State Information Sharing and Analysis Center and the Elections Infrastructure ISAC. This restriction comes as CISA phases out federal support for those ISACs. (StateScoop)

U.K. Government Warns on Infrastructure Cyber Risk. The U.K.’s National Cyber Security Centre has updated its Cyber Assessment Framework, urging organizations in critical infrastructure sectors to stay current with evolving cyberattack methods and ensure they can operate if breached. The NCSC, which is part of the U.K.’s signals intelligence agency, Government Communications Headquarters, said critical infrastructure sectors are at a heightened risk of attack. (The Record)

 

Cyberattacks & Enforcement

PHOTO: IDA MARIE ODGAARD/ZUMA PRESS

Pandora Discloses Breach. Jewelry retailer Pandora confirmed that customer names, email addresses and birth dates were accessed in a data breach traced to a third‑party Salesforce platform. The company said the breach was contained quickly, and that no financial data or passwords were stolen. (Tech Radar)

Justice Department Fines Military Contractor for Cyber Controls. A California defense contractor, Aero Turbine Inc., and its private equity owner, Gallant Capital Partners LLC, have agreed to pay $1.75 million to resolve allegations under the False Claims Act for knowingly failing to meet cybersecurity requirements in a U.S. Air Force contract. (Stockton Record)

 

About Us

The WSJ Pro Cybersecurity team is Deputy Bureau Chief Kim S. Nash (on X @knash99), reporter James Rundle, reporter Angus Loten and reporter Catherine Stupp (@catstupp). Follow us on X @WSJCyber. Reach the team by replying to any newsletter you receive or by emailing Kim at kim.nash@wsj.com.

 
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