Tornado Cash Co-founder Roman Storm Faces Criminal Trial: Why Code Writers Are Being Prosecuted
Tornado Cash co-founder Roman Storm is facing criminal trial in the United States. Why is a person who writes code being prosecuted? This case affects every crypto user and represents a crucial battle between privacy and regulation in the cryptocurrency world.
✅ What is Tornado Cash?
Tornado Cash is a "washing machine" in the crypto world.
Its function is simple:
- 👉 Mixes the cryptocurrencies you transfer in, then transfers them out through another address
- 👉 This way, others can't see where your wallet came from, protecting your privacy
Usage Examples:
Normal People:
Don't want others to know their salary address → Use Tornado Cash to mix coins → Transfer to spending wallet
Hackers:
Stole coins → Use Tornado Cash to launder → Hide them
😨 Why the Trouble?
The US government alleges:
- Tornado Cash was used by North Korean hacker group (Lazarus Group) for money laundering, with amounts exceeding tens of billions of dollars
In 2022, the US Treasury Department directly placed Tornado Cash on the sanctions list, prohibiting Americans from using it.
Developer Roman Storm and his team were therefore prosecuted.
⚖️ What Are the Charges?
🔻 The US Government's Claims:
Money Laundering
You developed tools for hackers to launder money
Violation of Sanctions Law
Tornado was used by North Korea, and you still operate it, which is illegal
Unregistered Money Transmission Business
You provide banking-like functions, but you didn't register
🛡️ How Does Storm Defend Himself?
His lawyers say:
🛠️ I Just Wrote Code
Once this code is deployed, I cannot control who uses it or how they use it
💡 Tornado is Decentralized
There are no backend servers, and I cannot shut it down
📜 Writing Code is "Free Speech"
The US Constitution guarantees my right to write whatever code I want
📖 Previous Treasury Interpretations
According to previous US Treasury interpretations, writing tools is not equivalent to transmitting funds
💸 Why Does He Need $1.5 Million?
The case has been going on for 3 weeks, and costs have exceeded the budget.
Already spent about $4 million, and still needs $1.5 million more.
He publicly appealed for help on social platform X, hoping the community would support his legal team.
👀 What About the Other Two Founders?
- Pertsev (in Netherlands): Already convicted of "money laundering," currently appealing
- Semenov (Russia): On the run, wanted by US FBI
🚨 Why Should You Care?
This is the most important privacy vs. regulation lawsuit in the crypto world.
If Storm is convicted, it means:
❌ If Convicted:
- Writing decentralized code = potential jail time
- Anonymous tool developers must be responsible for user behavior
- All crypto privacy projects may be treated as "potential criminal tools"
✅ If He Wins:
- Writing code is freedom, not a crime
- The crypto world can still have privacy rights
- DeFi developers can innovate more confidently without "over-self-censorship"
"The Tornado Cash case is not just about one developer's fate, but a key battle for the entire crypto industry against regulatory misunderstanding."
📅 Tornado Cash Event Timeline (2019–2025)
🛠️ Tornado Cash Project Launch
Developed by Roman Storm, Roman Semenov, and Alexey Pertsev, based on Ethereum smart contracts to implement coin mixing functionality
🚀 Gradual Feature Enhancement
Implemented on-chain anonymous transfers, multi-currency support, widely used in ETH transfer "privacy protection" scenarios
⚠️ Investigation Signs Emerge
US regulators focus on Tornado Cash being frequently used by hackers (especially North Korea's Lazarus Group)
💣 OFAC Sanctions Tornado Cash
First time in history that an "open-source code protocol" has been sanctioned
👨💻 Pertsev Arrested in Netherlands
Charged as "money laundering tool conspirator," becoming the first co-founder to be arrested
⛓️ GitHub Removes Tornado Cash Code
Multiple platforms delist related repositories, developer community protests freedom of speech infringement
🧑⚖️ Civil Liberty Groups File Lawsuit
Supporting Tornado Cash users to challenge OFAC sanctions reasonableness
🧠 Community Launches "Free Roman Storm" Fundraising
Expressing support for Storm, donations exceed $1 million for legal defense
⚖️ Pertsev Convicted in Netherlands
Becomes precedent for open-source developers being convicted, drawing global developer attention
🧾 OFAC Revises Policy
Recognizes that "some use of Tornado does not automatically constitute illegality," official attitude slightly softens
🔥 Roman Storm Trial Begins in New York
Charged with money laundering, sanctions violations, unregistered money services; trial ongoing
⚖️ Results Announced
Trial results may determine whether future DeFi/privacy protocols face stricter legal constraints
📊 Major Crypto Industry Legal Events Timeline (2014–2025)
Stay Informed About Crypto Legal Developments
Choose a secure cryptocurrency exchange for your trading needs: