Prosecutors are after Roman Storm, the co-founder of Tornado Cash. They want him to forfeit assets worth $3.1 million, including his homes and a Tesla SUV. They claim these were bought with money linked to illegal activities.
This case has stirred up the crypto community. Many see it as a threat to open-source software and privacy. Storm is trying to raise funds for his upcoming trial, now set for April.
In May, another developer of Tornado Cash, Alexi Pertsev, received a five-year prison sentence in the Netherlands. He was found guilty of laundering $2.2 billion through the crypto mixer.
Storm’s trial was supposed to start on December 2, but it has been pushed back. He’s asking for donations on social media to help cover his legal costs.
One organization estimates that legal fees could hit $500,000 a month for both Storm and Pertsev. Tornado Cash, launched in 2019, allows users to hide their crypto transactions on Ethereum. While it’s popular among privacy advocates, it has also attracted criminals looking to launder stolen funds.
In 2022, the U.S. government sanctioned Tornado Cash, citing its use by North Korean hackers. In August 2023, Storm faced three charges: conspiracy to commit money laundering, operating an unlicensed money-transmitting business, and violating U.S. sanctions. The indictment claims Storm knew Tornado Cash was a haven for large-scale money laundering.
Recently, prosecutors updated the indictment. They want Storm to forfeit his 2022 Tesla Model Y and two homes in Washington state. One home in Auburn sold for $1.8 million in 2023, while another with a view of Lake Tapps sold for $1.3 million in 2021. Prosecutors argue these properties represent money tied to Storm’s alleged crimes.
Storm’s team argues that creating Tornado Cash is protected by the First Amendment, which guarantees free speech. However, in September, Judge Katherine Failla denied Storm’s request to dismiss the case. She expressed doubts about the First Amendment defense, stating that while coding can be expressive, using code to direct a computer is not protected speech.
Critics of this view believe the responsibility for illegal use of open-source software lies with the users, not the developers. Amanda Tuminelli, chief legal officer at the DeFi Education Fund, emphasized that the blame should be on those who misuse the tools. Jake Chervinsky, a legal expert at Variant, called this legal argument an attack on software developers’ freedom.
In the Netherlands, a court rejected Pertsev’s defense that he wasn’t obligated to monitor illegal transactions on Tornado Cash. Judge Henrieke Slaar stated that Tornado Cash is designed to facilitate criminal activities. Pertsev is appealing this ruling, but a judge recently denied his request for release to prepare for his appeal.