Roman Storm Launches $1.5M Fundraising for Tornado Cash Trial as Legal Costs Surge to $5M

Roman Storm, co-founder of the decentralized privacy protocol Tornado Cash, has launched a $1.5 million fundraising campaign to cover escalating legal costs as his criminal trial in New York enters its third week. The trial, which began on July 14, charges Storm with conspiracy to commit money laundering, sanctions violations, and operating an unlicensed money-transmitting business. Prosecutors allege Tornado Cash, a tool for obscuring cryptocurrency transaction trails, was used to launder over $1 billion, including funds stolen by North Korea’s Lazarus Group. Storm has raised $3.2 million to date, with a $5 million target set for his defense fund, supported by contributions from the Ethereum Foundation and crypto community donations [1]. The developer maintains that Tornado Cash is a decentralized, non-custodial protocol whose smart contracts operate autonomously, and that developers should not be held liable for user actions [4].

Legal costs have surged due to the trial’s extended duration and unexpected complexities, such as the introduction of additional witnesses. Storm’s team initially projected expenses of $3.5 million but now estimate the total could reach $5 million [4]. The defense argues that U.S. prosecutors’ case effectively criminalizes open-source code development, violating free speech protections under the First Amendment. They also reference a 2019 FinCEN guidance stating that anonymizing software developers are not required to register as money transmitters [3].

The trial’s outcome could establish a pivotal legal precedent for decentralized finance (DeFi) innovation. Prosecutors aim to prove Storm knowingly enabled illicit use of Tornado Cash without implementing safeguards, while the defense emphasizes the protocol’s immutability and lack of centralized control. This case follows the conviction of Tornado Cash co-founder Alexey Pertsev in the Netherlands and the ongoing fugitive status of another co-founder, Roman Semenov. A verdict is expected by August 11, according to Storm’s fundraising platform [5].

The crypto community’s financial support for Storm reflects broader concerns about regulatory overreach in the DeFi space. Supporters argue that privacy tools are essential for financial autonomy, while critics warn a conviction could stifle innovation. The legal battle underscores tensions between transparency mandates and the decentralized ethos of blockchain technology, with implications for how regulators approach similar cases globally [5].

Source: [1] [Roman Storm asks for $1.5M lifeline as Tornado Cash trial presses on] (https://cointelegraph.com/news/roman-storm-asks-more-donations-tornado-cash-case?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)

[2] [Roman Storm asks for $1.5M lifeline as Tornado Cash trial presses on] (https://cointelegraph.com/news/roman-storm-asks-more-donations-tornado-cash-case?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)

[3] [Roman Storm asks for $1.5M lifeline as Tornado Cash trial presses on] (https://cointelegraph.com/news/roman-storm-asks-more-donations-tornado-cash-case?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)

[4] [Roman Storm asks for $1.5M lifeline as Tornado Cash trial presses on] (https://cointelegraph.com/news/roman-storm-asks-more-donations-tornado-cash-case?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)

[5] [Roman Storm asks for $1.5M lifeline as Tornado Cash trial presses on] (https://cointelegraph.com/news/roman-storm-asks-more-donations-tornado-cash-case?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)