Roman Storm Seeks $1.5M for Legal Defense as Tornado Cash Trial Enters Third Week

Roman Storm, co-creator of the Tornado Cash cryptocurrency mixing protocol, has urgently requested an additional $1.5 million in legal funding as his trial in New York enters its third week. The developer, whose platform allows users to obscure transaction trails by pooling funds, faces U.S. prosecutors alleging conspiracy to launder money, sanctions violations, and operating an unlicensed money-transmitting business. Storm’s legal team has already raised over $3.9 million through public donations and the Ethereum Foundation, which contributed $750,000 to his defense [1]. The trial, which began on July 14 in the Southern District of New York, has drawn global attention due to its potential to set a precedent for how courts define liability for developers of open-source privacy tools.

Prosecutors argue that Tornado Cash was exploited by illicit actors, including North Korea’s state-backed Lazarus Group, to circumvent U.S. sanctions. The U.S. Treasury’s Office of Foreign Assets Control (OFAC) had previously sanctioned the protocol in August 2022, but the sanctions were overturned in January 2023 after a civil lawsuit led by Tornado Cash users. The protocol was officially removed from OFAC’s blacklist in March 2023 [1]. Storm’s defense team contends that Tornado Cash is not a business but a decentralized, open-source protocol beyond its creators’ control. They rely on a 2019 Financial Crimes Enforcement Network (FinCEN) guidance stating that developers of anonymizing software need not register as money transmitters. Additionally, the team asserts that publishing code is protected as free speech under the U.S. First Amendment, distinguishing Tornado Cash from centralized services that explicitly facilitate financial transactions [1].

The case could reshape the regulatory landscape for privacy-focused decentralized finance (DeFi) tools. A conviction could deter innovation by criminalizing open-source protocols, while a defense victory might reinforce legal protections for software developers. Storm’s legal campaign has set a $5 million fundraising goal, with 65% already secured through donations and Ethereum Foundation support. The trial, expected to conclude by August 11, highlights the tension between regulatory enforcement and technological autonomy.

Storm is not the only Tornado Cash co-creator facing legal challenges. His teammate Alexey Pertsev was convicted of money laundering in the Netherlands in May 2024 and is appealing the ruling. Pertsev, temporarily released under electronic monitoring, has denied wrongdoing. Meanwhile, another co-creator, Roman Semenov, remains a fugitive and is listed on the FBI’s wanted persons database [1]. The case underscores broader debates about privacy in digital finance, with regulators warning against the misuse of anonymity tools by criminal networks.

The U.S. government’s focus on Tornado Cash reflects a strategy to combat illicit finance, though critics argue prosecuting open-source developers could stifle innovation. The outcome of Storm’s trial may influence future legal battles over the boundaries of digital privacy and regulatory oversight in the cryptocurrency sector [1].

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[1] [Roman Storm asks more donations: Tornado Cash case](https://cointelegraph.com/news/roman-storm-asks-more-donations-tornado-cash-case)