Vitalik Buterin Condemns Criminalization of Code in Appeal for Tornado Cash Developer

Ethereum co-founder Vitalik Buterin has publicly condemned the criminalization of code in a letter supporting Tornado Cash developer Roman Storm. Storm, who was convicted on a money-transmitting conspiracy charge, now faces a potential prison sentence of up to five years. Buterin emphasizes that the case is more about software development than direct financial harm.

Tornado Cash is a non-custodial cryptocurrency mixer that allows users to obscure the origins of their transactions. The U.S. Department of Justice has argued that the tool facilitated over $1 billion in illicit fund transfers. Storm's conviction, in August, included a money transmitting charge, but a jury deadlocked on additional charges of money laundering and sanctions violations.

Buterin's letter presents the use of privacy tools like Tornado Cash as a necessary defense against increasing digital surveillance. He stated that he personally uses such tools to support human rights charities without leaving a traceable digital footprint.

Why Did This Happen?

The prosecution of Roman Storm has sparked debate about the legal boundaries of software development. Buterin argues that the criminalization of code threatens innovation in the blockchain space. The Tornado Cash platform, while non-custodial, has been accused of enabling financial crime by allowing users to obfuscate transaction trails.

The U.S. government has taken a firm stance against tools it deems complicit in facilitating money laundering. This includes other cases, such as the prosecution of developers involved in the Samourai Wallet and the recent conviction of Tornado Cash co-creator Alexey Pertsev in the Netherlands.

How Did Markets Respond?

The broader cryptocurrency market has not shown immediate volatility in response to Storm's sentencing and Buterin's support. However, the case has added to the growing legal uncertainty surrounding privacy-focused tools. In August 2025, over 110 crypto entities wrote to Senate leaders, urging the inclusion of protections for software developers in key market structure legislation.

At the same time, the Ethereum Foundation and other blockchain supporters have continued to fund legal defense efforts for developers like Storm. Buterin personally contributed 50 ETH and the Ethereum Foundation pledged to match $750,000 in community donations to support the case.

What Are Analysts Watching Next?

The outcome of Storm's sentencing, scheduled for later this year, will likely serve as a test case for the legal boundaries of privacy technology in the U.S. and globally. Analysts are also monitoring the U.S. Justice Department's evolving stance on whether code itself can be a crime. In August 2025, a top Justice Department official stated that writing code is not a crime.

The Tornado Cash case is part of a broader legal and regulatory shift toward increased oversight of digital assets. The Responsible Financial Innovation Act, a proposed digital asset market structure bill, has faced delays and is expected to pass as late as 2027.

Investors and developers are watching for signals of whether U.S. policymakers will prioritize innovation or enforcement in the digital asset space. The debate over privacy tools and code criminalization could influence the development of future legislation and shape the long-term trajectory of blockchain technology.