- Roman Storm asks for $1.5 million more as legal costs rise during his third week of trial in New York court.
- Prosecutors say Tornado Cash helped launder funds and Storm failed to stop illegal crypto transactions.
- Defense argues Tornado Cash is decentralized and Storm should not be punished for how users used the code.
Roman Storm, co-creator of Tornado Cash, is seeking another $1.5 million to cover legal expenses. His criminal trial in New York has entered its third week. Storm faces charges related to money laundering, sanctions violations, and operating an unlicensed money service.
His legal team has already raised $3.2 million through public donations. However, rising legal costs have pushed the defense fund’s goal to $5 million. The Ethereum Foundation pledged $750,000, including matching community contributions. Storm’s defense fund is coordinated through a public campaign platform.
Prosecution Pushes Money Laundering Allegations
U.S. prosecutors allege that Tornado Cash helped launder over $1 billion in crypto assets. They claim the protocol was used by groups like North Korea’s Lazarus Group. They also argue that Storm failed to apply safeguards to stop illegal transactions.
The Department of Justice charges Storm with three offenses. The charges involve conspiracy to launder money, failing to comply with economic sanctions law, and operating an unlicensed money-transmitting enterprise.
The case is being tried in the Southern District of New York which started on July 14 and was scheduled to last two weeks. Due to unexpected developments, it has now been extended, with a verdict likely by August 11.
Defense Argues Free Speech and Protocol Autonomy
Storm’s legal team says Tornado Cash is a decentralized tool beyond the control of its creators. They argue that the protocol operates through immutable smart contracts. Once deployed, these contracts run automatically without human oversight.
The defense also points to legal guidance from 2019. The guidance from FinCEN said developers of privacy software are not required to register as money transmitters. They believe this applies to Storm’s case.
Storm’s team also argues that writing and publishing code is protected under the U.S. Constitution. They say prosecuting developers threatens freedom of expression and software development.
Community Support Highlights Broader Concerns
The crypto community continues to donate in support of Storm’s legal battle. Contributors believe this case could set a precedent for decentralized finance. Many are concerned about how future developers may be treated in similar cases.
The involvement of Ethereum Foundation signifies major concerns on over regulation. Critics are concerned that aggressive enforcement may negatively impact blockchain innovation. Supporters of Storm see the case as a turning point for privacy rights in crypto.
Tornado Cash co-founders Alexey Pertsev and Roman Semenov also face legal consequences. Pertsev was convicted in the Netherlands earlier this year. Semenov remains wanted by U.S. authorities.
