Roman Storm’s Critique of the DOJ
Roman Storm, a co-founder of Tornado Cash, has delivered a fiery critique of the Department of Justice (DOJ) under the Trump administration, expressing deep concerns regarding the impact of his impending criminal trial on decentralized finance (DeFi). He argues that a conviction in his case could lead to a catastrophic blow to the DeFi landscape.
“The DOJ aims to suppress DeFi by claiming I should have controlled it, instituted Know Your Customer (KYC) procedures, and never launched it in the first place,” Storm articulated. “They are attempting to dismantle my defense by hindering my ability to call upon expert witnesses. If I am convicted, the vitality of DeFi will perish with me.”
Alongside his stark warning, he reflected on the ramifications of a potential loss:
“The concept of financial liberation and the principles embedded in the code I trusted would evaporate into obscurity. This isn’t solely about my fate; it’s about all of us.”
Charges Against Storm and Implications
In 2023, the DOJ charged Storm with conspiracy to commit money laundering, operating an unlicensed money transmitter business, and evading U.S. sanctions due to his involvement with Tornado Cash. This platform, which allows users to obfuscate their on-chain transactions, has garnered popularity among privacy advocates but has also been linked to illicit activities, including connections to adversaries of the U.S., such as North Korea.
Earlier this year, following Donald Trump’s return to power and a directive for federal agencies to ease their stance on the digital asset sector, the DOJ dissolved its dedicated cryptocurrency enforcement unit. Prosecutors were then instructed to refrain from pursuing charges related to coin mixing services about their users’ actions, raising hopes among many in the crypto community that Storm might receive a pardon. Trump previously pardoned Ross Ulbricht, the creator of Silk Road, a bitcoin-fueled black market.
Concerns Over Prosecution
However, fears emerged recently as the Trump administration’s DOJ announced its intent to proceed with the prosecution against Storm, slightly adjusting the charges by dismissing a single claim related to registration failures as a money transmitting business. Advocates for DeFi, including Storm, voice concerns that the prosecution wrongfully holds software developers accountable for the misuse of their creations. In a parallel case, another Tornado Cash developer, Alexey Pertsev, was convicted by a Dutch court, which deemed the platform as “designed for criminals.”
Despite the Trump administration’s previous moves supporting DeFi, such as enacting legislation to repeal an unpopular IRS ruling and endorsing crypto legislation beneficial to decentralized finance, the ongoing legal battle against Storm and similar figures has sparked warnings from industry proponents. They argue that successful prosecutions could severely undermine foundational DeFi principles.
Questions Raised by the DeFi Community
In a recent inquiry by Decrypt regarding his views on the Trump administration’s attitude towards DeFi, Storm cited a recent legal brief from the DeFi Education Fund. This document raised a crucial question:
“Should we eradicate everything on the market that is linked to criminal use?”
It proclaimed that software developers should not be criminally charged for the illicit activities of others who utilize their tools.
Edited by James Rubin
