Ethereum News Today: Prosecution Rests Case in Tornado Cash Trial as Defense Calls Ethereum Developer to Highlight Privacy Tool’s Cybersecurity Role

Prosecutors in the criminal trial of Roman Storm, co-founder of the Ethereum-based privacy tool Tornado Cash, rested their case on July 9, 2025, paving the way for the defense to call Preston Van Loon, an Ethereum core developer, as its first witness. Van Loon’s testimony, which described Tornado Cash as a “privacy tool for Ethereum,” marked a pivotal shift in the trial, with the defense emphasizing the mixer’s technical utility and its role in protecting users from cyber threats. Van Loon reportedly disclosed that he had used Tornado Cash four times between 2019 and 2020 to send 43 ETH, citing safety concerns as a primary motivation for his actions. He warned that public visibility of one’s assets could make individuals vulnerable to targeted attacks, stating, “If [hackers] know the scope of my assets, I can become a target” [1].

The defense’s strategy appears focused on contextualizing Tornado Cash within the broader blockchain ecosystem, arguing that its functionality—designed to obscure transaction details—was not inherently criminal. During cross-examination, prosecutors questioned Van Loon about his personal ties to Storm and whether he used centralized platforms like Coinbase. However, the defense countered by highlighting the necessity of privacy-preserving tools in an environment where malicious actors, such as the North Korean-linked Lazarus Group hackers, exploit public blockchain data for illicit purposes. Storm’s legal team also signaled plans to call “two or three doctors” and potentially a Chainalysis representative to further substantiate their arguments [1].

The trial, now in its ninth day, centers on charges of money laundering, conspiracy to operate an unlicensed money transmitter, and sanctions violations. These allegations stem from U.S. Treasury sanctions imposed in 2022 against Tornado Cash’s smart contract addresses, which were allegedly used to facilitate transactions linked to Lazarus Group activities. Van Loon, who previously contested the Treasury’s sanctions in court, reiterated the defense’s position that privacy tools are essential for mitigating risks in the crypto space. His testimony aligns with broader arguments that Tornado Cash’s design aimed to address legitimate security concerns rather than enable criminal conduct [1].

The case has drawn comparisons to other high-profile crypto prosecutions. If convicted, Storm could face a prison sentence similar to Alexey Pertsev, another Tornado Cash co-founder who received over five years in the Netherlands in 2024 for money laundering. U.S. District Judge Katherine Failla has referenced the 25-year sentence given to former FTX CEO Sam Bankman-Fried, underscoring the judiciary’s heightened scrutiny of crypto-related crimes. The defense has also sought to modify jury instructions to clarify Tornado Cash’s role and its connections to the Lazarus Group, a move aimed at ensuring jurors grasp the technical nuances of blockchain technology [1].

As the defense prepares to conclude its case within two weeks, prosecutors must assess whether the technical and expert testimony effectively challenges the government’s narrative that Tornado Cash facilitated illicit activity. The outcome of the trial could set a significant legal precedent for the crypto industry, particularly regarding the boundaries of regulatory oversight and the rights to privacy and decentralization. With Storm still facing potential years in prison, the proceedings highlight the ongoing tension between innovation in blockchain technology and the enforcement of traditional financial regulations [1].

Sources:

[1] “Ethereum Core Developer Testifies In Roman Storm’s Defense As Prosecution Rests Case,” Cointelegraph, July 9, 2025. https://cointelegraph.com/news/ethereum-core-developer-testifies-roman-storm