Ethereum News Today: U.S. DOJ Trial Against Tornado Cash Co-Founder Enters Final Stages as Legal Battle Over Crypto Liability Intensifies

The U.S. Department of Justice’s trial against Roman Storm, co-founder of the Ethereum-based privacy tool Tornado Cash, is entering its final stages as defense attorneys prepare to rest their case next week. Judge Katherine Failla indicated in court on June 28 that closing arguments are expected by Tuesday or Wednesday, giving Storm’s legal team a five-day window to present its defense following a 10-day trial marked by intense scrutiny of the tool’s role in facilitating illicit transactions [1]. Storm’s potential decision to testify remains uncertain, with the defendant previously stating he “may or may not” take the stand [2].

Prosecutors rested their case on June 25, presenting evidence including emails that allegedly showed Storm’s team soliciting user funds and being aware of Tornado Cash’s use in high-profile hacks, such as the $150 million Ronin Network theft [5]. The defense has countered by emphasizing Tornado Cash’s open-source nature, arguing that developers cannot be held liable for how users employ their creations. Ethereum core developer Preston Van Loon, the first defense witness, testified that Tornado Cash functions as a decentralized privacy tool, akin to a “mixer” designed to obfuscate transaction trails rather than enable crime [2].

The trial has sparked broader debates about the legal boundaries of crypto innovation. Storm’s attorneys warn that a conviction could stifle open-source development, asserting that “coding is not a crime” and framing the case as a test of whether the U.S. seeks to criminalize decentralized technologies [7]. Meanwhile, prosecutors argue that Tornado Cash’s design inherently facilitates money laundering, regardless of developers’ intent. The defense’s strategy hinges on disentangling Storm from the tool’s misuse, a challenge given the government’s focus on his alleged awareness of illicit activities [5].

The crypto community has rallied behind Storm, with Ethereum co-founder Vitalik Buterin and the Ethereum Foundation contributing over $2.8 million to his legal fund. Buterin’s X posts, including a statement that “in Ethereum we protect our own,” underscore the community’s defense of privacy as a constitutional right [1]. However, Storm’s personal ties to the industry face strain: he claimed a software company, Gusto, deactivated his account due to the charges, though the company has not publicly responded [1].

Legal analysts note that Storm’s choice to testify—or not—could sway the jury. A defense filing on July 3 outlined a two-week closing phase, suggesting the team is preparing to solidify arguments or call additional witnesses. If Storm testifies, it would provide direct insight into his knowledge of risks; his absence could allow prosecutors to frame the case as premeditated negligence [3]. The outcome may set a precedent for how courts define liability for decentralized protocols, with implications for global regulatory frameworks.

Sources:

[1] Roman Storm’s Team Expected to Close Case Next Week

https://www.tradingview.com/news/cointelegraph:579e31d7f094b:0-roman-storm-s-team-expected-to-close-case-next-week-developer-may-still-testify/

[2] Ethereum Core Developer Testifies in Roman Storm Defense

https://cointelegraph.com/news/ethereum-core-developer-testifies-roman-storm

[3] U.S. Justice Rests Case in Tornado Cash Trial

https://www.ainvest.com/news/ethereum-news-today-justice-rests-case-tornado-cash-trial-defense-calls-core-ethereum-developer-pivotal-witness-2507/

[5] U.S. Department of Justice Considers Charges Against Roman Storm

https://www.binance.com/square/post/27425375004330

[7] Roman Storm Trial: Is Coding a Crime?

https://www.coindesk.com/policy/2025/07/24/roman-storm-trial-is-coding-a-crime-the-tornado-cash-court-battle-intensifies