The fight for privacy tools continues as Tornado Cash’s co-founder, Roman Storm, prepares for his upcoming Q2 2025 trial. Joining the list of crypto figures supporting Tornado Cash’s legal battle, Paradigm has announced a donation to aid Storm’s defense in the long-awaited trial and prevent its potential negative effects on the industry.
Tornado Cash Founder Receives Crypto Industry Aid
Crypto investment firm Paradigm revealed it is set to donate over a million dollars to aid Tornado Cash co-founder’s legal battle. The firm’s co-founder, Matt Huang, announced on X that Paradigm would give $1.25 million to “help fund Roman Storm’s legal defense.”
Huang expressed concern about the implications of Storm’s case and its potential effects on the industry: “The prosecution’s case threatens to hold software developers criminally liable for the bad acts of third parties, which would have a chilling effect on crypto and beyond.”
Storm thanks Huang for Paradigm's donation. Source: Roman Storm on X
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Tornado Cash in August 2022 for “failing to impose effective controls” preventing malicious actors from laundering funds through the protocol, including $455 million by North Korea’s Lazarus Group.
Storm and Tornado Cash’s developer, Alexey Pertsev, were detained following the sanctions. Pertsev is serving a 5-year sentence in the Netherlands after being found guilty of money laundering by the s-Hertogenbosch Court of Appeal in May 2024.
Meanwhile, the crypto mixer’s co-founder was detained in Washington in August 2023 and faces three charges in his upcoming trial, including conspiracy to commit money laundering, conspiracy to commit sanctions violations, and conspiracy to operate an unlicensed money-transmitting business.
Storm pleaded not guilty to all charges and was freed on a $2 million bond. However, if convicted, he could face up to 45 years in prison. In November 2024, Storm’s trial, initially scheduled for December 2024, was delayed until April 14, 2025.
A Fight For Privacy Tools And Developers
Following President Trump’s pardon of Silk Road’s founder, Ross Ulbricht, several crypto figures advocated for the release of the Tornado Cash co-founder and developer. Ethereum’s founder, Vitalik Buterin, stated that no man should be left behind, adding that Storm and Pertsev should be next.
Storm responded to Buterin’s message, thanking him for the help to him and Pertsev over the past two and half years. Additionally, he commented on the “terrifying criminalization of privacy” that his prosecution implies.
The charges against me threaten to criminalize software development itself. If successful, the implications could extend far beyond the crypto industry, impacting every software developer. I face up to 45 years in prison on charges including operating an unlicensed money-transmitting business, conspiracy to commit money laundering, and sanctions evasion.
The crypto mixer’s co-founder also highlighted the chilling effects his case has already had on software tool developers, stating that “a developer filed a lawsuit against the DOJ, seeking relief because my case has made them fearful of releasing new software.”
It’s worth noting that a week ago, the US District Court for the Western District of Texas reversed the OFAC sanctions against Tornado Cash following its November ruling. As reported by Bitcoinist, the Fifth Circuit Court of Appeals ruled that OFAC had “overstepped its congressionally defined authority” by sanctioning the crypto mixing protocol.
This victory signifies a positive step for the crypto industry, but as Attorney and Executive Director at CoinCenter Peter Van Valkenburgh noted, it is not the end of the story. The “District Court will still need to decide whether the remedy is nationwide vacatur or more limited relief,” with the nationwide vacatur remaining the industry’s target.
Bitcoin (BTC) trades at $101,993 in the one-week chart. Source: BTCUSDT on TradingView
