Ethereum News Today: U.S. Justice Rests Case in Tornado Cash Trial, Defense Calls Core Ethereum Developer as Pivotal Witness

The U.S. Department of Justice rested its case in the criminal trial of Roman Storm, co-founder of the Ethereum-based cryptocurrency mixer Tornado Cash, on June 25, 2025, allowing defense attorneys to begin presenting their rebuttal. The defense called Preston Van Loon, a core Ethereum developer, as its first witness, marking a pivotal moment in a trial that could set critical legal precedents for the cryptocurrency industry [1]. Van Loon’s testimony highlighted the technical and philosophical underpinnings of blockchain technology, with the developer describing Tornado Cash as a “privacy tool for Ethereum” and citing personal use of the service to enhance security. He stated he had sent 43 ETH through Tornado Cash in 2019 or 2020 to mitigate risks of asset exposure to potential hackers [1].

Prosecutors’ cross-examination focused narrowly on Van Loon’s relationship with Storm and his use of centralized platforms like Coinbase, aiming to challenge the defense’s narrative of Tornado Cash as a neutral infrastructure for privacy [1]. The defense has indicated plans to call additional witnesses, including experts from Chainalysis and potentially medical professionals, to counter allegations that Storm’s work facilitated illicit financial activity. Storm faces charges including money laundering, conspiracy to operate an unlicensed money transmitter, and violating sanctions targeting North Korean hackers linked to the Lazarus Group [1].

The case has drawn intense scrutiny due to its implications for developer liability in decentralized systems. Van Loon, who previously opposed U.S. Treasury sanctions against Tornado Cash’s smart contract addresses, emphasized the protocol’s role in protecting user anonymity on Ethereum [1]. His testimony aligns with the defense’s strategy to frame the trial as a clash between regulatory overreach and the open-source ethos of blockchain technology. Judge Katherine Failla, overseeing the case, has referenced the gravity of the charges by citing the recent 25-year sentence of former FTX CEO Sam Bankman-Fried, signaling potential severe consequences for a conviction [1].

Legal analysts note that the trial’s outcome could shape how courts define responsibility for decentralized applications (dApps) and whether developers can be held accountable for users’ actions. The defense’s reliance on a core Ethereum developer underscores the complexity of attributing intent in permissionless systems, where code operates independently of individual control [1]. Prosecutors, meanwhile, must prove direct links between Storm’s contributions to Tornado Cash and the alleged facilitation of illicit transactions. The defense has also sought to adjust jury instructions to clarify the relationship between Tornado Cash and the Lazarus Group, aiming to mitigate prejudicial assumptions about the service’s primary purpose [1].

The case follows a broader trend of legal challenges against crypto projects, including the 2024 Dutch conviction of Tornado Cash co-founder Alexey Pertsev for money laundering. However, the U.S. trial is unique in its focus on a U.S.-based developer and the potential criminalization of tools designed for privacy [1]. As the defense prepares to conclude its case within two weeks, the trial remains a focal point for debates over the boundaries of regulatory authority in decentralized finance. The court’s interpretation of Ethereum’s technical architecture—and the role of its developers—could influence future enforcement actions and legislative approaches to cryptocurrency innovation.

[1] [Ethereum Core Developer Testifies in Roman Storm Defense as Gov’t Rests Case] [https://cointelegraph.com/news/ethereum-core-developer-testifies-roman-storm]