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Tornado Cash Founder's Trial Tests Legal Boundaries for Crypto Developers

Time :2025-07-15 05:38:52   key word: Tornado Cash, Roman Storm, crypto privacy tools, developer liability, money laun

Landmark Case Challenges Developer Accountability in DeFi

Roman Storm, co-founder of Ethereum privacy tool Tornado Cash, faces a pivotal trial this week in New York that could redefine legal boundaries for blockchain developers. The case centers on whether creators of decentralized protocols can be held responsible for third-party misuse of their code.

The Charges and Core Arguments

Prosecutors allege Storm violated money laundering laws and sanctions through Tornado Cash's operation, potentially exposing him to 【40+ years】 imprisonment. The defense counters that the open-source protocol became immutable after deployment, with Storm retaining no control over its use. Legal experts note this represents the first major test of the "code as speech" defense under the First Amendment.

——"This isn't about running a business, but about publishing math,"—— Storm's attorney Brian Klein argued in pretrial filings. The defense cites a 2019 FinCEN guidance stating anonymizing software developers aren't money transmitters.

Political and Industry Implications

The trial coincides with shifting crypto enforcement policies. Judge Katherine Failla, who previously dismissed cases against Uniswap and Coinbase, recently indicated she may exclude 2022 sanctions from evidence. Meanwhile, the DOJ's April Blanche Memo discourages prosecuting developers without clear criminal intent.

Ethereum advocates have mobilized support, with Vitalik Buterin and crypto firms filing amicus briefs. A legal defense fund has raised nearly 【$2 million】, though Storm's team claims prosecutors misrepresented critical Telegram evidence.

Global Ripple Effects

The outcome may influence the appeal of Alexey Pertsev, Storm's co-founder convicted in the Netherlands. While European courts aren't bound by US rulings, a favorable decision could bolster arguments that decentralized protocol developers shouldn't face liability for autonomous systems.

Industry analysts warn a conviction might chill privacy-focused innovation. Aztec Labs counsel Amal Ibraymi notes: "This could set precedent making basic cryptography tools legally hazardous to develop."

What Comes Next

Jury selection begins Monday in SDNY, with proceedings expected to last 2-3 weeks. The case ultimately hinges on whether maintaining a user interface constituted money transmission, or if publishing immutable smart contracts qualifies as protected speech. As of press time, co-founder Roman Semenov remains on the FBI's wanted list.