Ethereum News Today: Roman Storm Defense Concludes Tornado Cash Trial as Privacy Tool vs. Prosecution's Illicit Use Claims

Roman Storm’s legal defense team is set to conclude its case in the U.S. Department of Justice trial related to Tornado Cash, with the developer’s potential testimony remaining uncertain as closing arguments approach. Prosecutors rested their case on June 25, 2025, after presenting evidence alleging that Tornado Cash—a decentralized privacy tool—was exploited by sanctioned entities, including North Korean hacking groups, to launder illicit funds. The defense has since called Ethereum core developer Preston Van Loon as a key witness, who testified that Tornado Cash was designed to enhance user security by obscuring transaction trails, not to enable criminal activity [1]. Van Loon also disclosed his personal use of the tool to transfer 43 ETH between 2019 and 2020 for privacy reasons, though prosecutors aggressively cross-examined him on his connections to Storm and his reliance on centralized exchanges like Coinbase to challenge his credibility [1].

Storm’s defense has indicated plans to present up to five witnesses, including technical experts and a representative from Chainalysis, to argue that Tornado Cash operates as a legitimate privacy mechanism within the blockchain ecosystem. The team also filed a motion to revise jury instructions, seeking to clarify the platform’s technical purpose and the legal scope of sanctions violations. Defense attorneys emphasized that the U.S. Treasury’s sanctions on Tornado Cash’s smart contract addresses were disproportionate, while prosecutors maintained that Storm’s alleged awareness of the platform’s risks justifies criminal charges [1]. The case has drawn comparisons to high-profile crypto prosecutions, such as Sam Bankman-Fried’s 25-year sentence and the Dutch conviction of Tornado Cash co-founder Alexey Pertsev, underscoring the broader regulatory scrutiny facing DeFi developers.

Community support for Storm has been notable, with Ethereum co-founder Vitalik Buterin and Paradigm founder Matt Huang contributing to a legal defense fund exceeding $2.8 million. Buterin tweeted, “In Ethereum we protect our own, and uphold our honor,” framing the trial as a test of constitutional rights, particularly privacy. Reddit users and crypto advocates echoed this sentiment, arguing that open-source software development should not be criminalized [1]. Meanwhile, Storm claimed that Gusto, a payroll company, deactivated his account due to the charges, though the firm has not publicly commented on the matter.

The trial’s trajectory highlights the legal challenges of regulating decentralized technologies. By positioning Tornado Cash as a privacy tool rather than an instrument for illicit activity, Storm’s team aims to challenge the U.S. government’s approach to blockchain accountability. Prosecutors, however, have emphasized national security concerns, framing crypto privacy as a threat to financial oversight. With closing arguments expected by July 2 or 3, the outcome could establish a precedent for how courts assess liability for developers of decentralized systems. The jury’s decision will weigh whether technical intent or real-world misuse defines criminal responsibility in an evolving regulatory landscape [1].

Sources: [1] [Ethereum Core Developer Testifies Roman Storm] (https://cointelegraph.com/news/ethereum-core-developer-testifies-roman-storm) [2] [U.S. Justice Rests Case in Tornado Cash Trial, Defense Calls Core Ethereum Developer Pivotal Witness] (https://www.ainvest.com/news/ethereum-news-today-justice-rests-case-tornado-cash-trial-defense-calls-core-ethereum-developer-pivotal-witness-2507/) [3] [ETH Core Developer Testifies in Roman Storm Defense as Prosecution Rests Case] (https://www.binance.com/en/square/post/27390462808002)