Roman Storm Raises $3.9M for Legal Defense as Tornado Cash Trial Enters Third Week

Roman Storm, co-founder of the Tornado Cash decentralized finance (DeFi) protocol, has launched a $1.5 million fundraising campaign to cover legal expenses as his trial in New York enters its third week. The U.S. Department of Justice (DOJ) has charged Storm with conspiracy to commit money laundering, sanctions violations, and operating an unlicensed money-transmitting business. Prosecutors allege that Tornado Cash, a privacy-focused tool, facilitated over $1 billion in crypto laundering, including transactions linked to North Korea’s Lazarus Group. Storm has pleaded not guilty, asserting that the protocol’s decentralized, non-custodial design renders its creators immune to liability for user activities [1].

The defense has raised $3.9 million in total, including $3.2 million through the Roman Storm Legal Defense Fund, which now aims to reach $5 million. The Ethereum Foundation contributed $750,000, doubling its initial pledge to match community donations. Storm’s legal team attributes rising costs to round-the-clock litigation, expert witness testimony, and unforeseen legal complexities. “We’ve forgotten what normal sleep feels like,” Storm wrote on X, emphasizing the urgency of the fundraising drive [2].

The trial, which began on July 14 under Judge Katherine Polk Failla, has extended beyond its initial two-week timeline and is now expected to conclude by August 11. Prosecutors argue that Storm knowingly enabled Tornado Cash’s use for illicit purposes, while the defense contends that the DOJ’s case conflates code creation with operational control. Citing a 2019 Financial Crimes Enforcement Network (FinCEN) guidance, the defense maintains that developers of anonymizing software are not obligated to register as money transmitters. The outcome could set a precedent for whether U.S. law holds open-source protocol creators accountable for how their code is used [3].

Storm’s co-founder Alexey Pertsev was convicted of money laundering in the Netherlands in May 2024 and is appealing, while another co-founder, Roman Semenov, remains a fugitive. This trial focuses on Storm’s role as a developer, with the defense emphasizing the distinction between code publication and user actions. The case has sparked debate over the legal status of privacy tools in the crypto space. Supporters argue that protocols like Tornado Cash protect financial autonomy, while critics warn a conviction could stifle innovation by criminalizing privacy features [4].

The trial highlights broader tensions between regulatory enforcement and decentralized technology. The defense frames Tornado Cash as a neutral protocol akin to encryption software, protected under the First Amendment as free speech. Prosecutors, however, portray it as a tool enabling criminal activity, aligning with broader U.S. efforts to clamp down on unregulated DeFi platforms. The verdict may influence future legal frameworks for open-source projects, particularly regarding liability and privacy rights in the digital economy [5].

Sources:

[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)