Ethereum News Today: Ethereum Core Developer Defends Tornado Cash as Privacy Tool in Storm Trial

Prosecutors in the U.S. Department of Justice’s criminal trial against Roman Storm, co-founder of the decentralized privacy tool Tornado Cash, rested their case on Thursday, shifting the focus to the defense’s strategy. The defense has begun its rebuttal by calling Preston Van Loon, a core Ethereum developer, as its first witness. Van Loon’s testimony, delivered in the Southern District of New York, centered on framing Tornado Cash as a “privacy tool for Ethereum,” emphasizing its role in protecting users from cyber threats rather than facilitating illicit activity. He disclosed using the mixing service to send 43 ETH in 2019-2020, citing safety concerns as a rationale for his actions [1].

During cross-examination, prosecutors probed Van Loon’s personal connections to Storm and whether he used centralized platforms like Coinbase, aiming to challenge his credibility as a neutral expert. Storm’s legal team, meanwhile, has outlined plans to summon “two or three doctors” and potentially a Chainalysis representative to support their defense. The trial, now in its ninth day, charges Storm with three counts: money laundering, conspiracy to operate an unlicensed money transmitter, and conspiracy to violate U.S. sanctions tied to Tornado Cash’s operations [1]. The developer’s testimony aligns with the defense’s broader argument that the U.S. Treasury’s sanctions on Tornado Cash’s smart contract addresses were excessive and inconsistent with the tool’s intended purpose.

The case has drawn comparisons to other high-profile crypto prosecutions. Former FTX CEO Sam Bankman-Fried, for instance, received a 25-year sentence in January 2024 after being convicted of seven felony charges. Similarly, Tornado Cash co-founder Alexey Pertsev was sentenced to over five years in the Netherlands in 2024 for money laundering. Prosecutors have highlighted the risks posed by Tornado Cash, including its alleged use by North Korean hacking groups like Lazarus. Storm’s defense filed a motion requesting revised jury instructions to clarify the platform’s role and the nature of the sanctions violations [1].

The trial’s outcome could establish a legal precedent for how courts assess liability for developers of decentralized tools. Van Loon’s expertise adds weight to the defense’s claim that Tornado Cash is a technical tool designed for privacy, not criminality. However, prosecutors have emphasized Storm’s alleged awareness of the platform’s risks, including its use by sanctioned entities, to argue that he intentionally enabled financial crime. The defense’s strategy hinges on reframing Tornado Cash as a legitimate privacy mechanism within the broader blockchain ecosystem [1].

As the trial progresses, the legal battle underscores the tension between regulatory enforcement and the principles of decentralized finance (DeFi). The defense’s reliance on expert testimony and technical arguments reflects a broader industry effort to defend anonymity tools against government scrutiny. Meanwhile, the prosecution’s focus on national security risks signals a strategic attempt to position crypto privacy as a threat to traditional financial oversight. With the defense expected to conclude its case in two weeks, the court’s final decision will likely influence how regulators and developers navigate the evolving landscape of blockchain innovation [1].

Sources:

[1] [Ethereum Core Developer Testifies Roman Storm] [https://cointelegraph.com/news/ethereum-core-developer-testifies-roman-storm]