Roman Storm Requests $1.5M As Tornado Cash Trial Continues

Key Takeaways

• The Tornado Cash trial centers on Roman Storm’s defense against money laundering and sanctions violations.
• Legal costs for Storm have surpassed $3.9 million, with an urgent new appeal for $1.5 million.
• The trial could set a critical legal precedent for crypto privacy tools and DeFi innovation.
• Tornado Cash was sanctioned by OFAC in 2022 but later removed following a legal challenge.
• Storm’s defense invokes the First Amendment and prior FinCEN guidance to argue that Tornado Cash is not a business.

Legal Costs Mounting Amid Tornado Cash Trial

On July 26th, Storm issued an urgent appeal via X, emphasizing that his legal expenses have “piled up fast.” In his post, he wrote:

“It sounds crazy, but I need again ~$1.5mm.”

Storm’s legal team has been working tirelessly to defend him, with Storm revealing in a separate message:

“We’ve forgotten what normal sleep feels like. Every hour counts, and so do the costs.”

Source: X (@rstormsf)

To date, the crypto community has contributed over $3.9 million to cover Storm’s mounting legal fees. The trial officially began on July 14th, drawing intense attention from across the blockchain and legal worlds.

Why The Tornado Cash Trial Matters

The Tornado Cash trial is more than just a legal battle for Storm, it could set a precedent that criminalizes open-source privacy tools.

Such a ruling may pose a significant threat to innovation within decentralized finance (DeFi) and restrict fundamental privacy rights in the crypto space.

The Controversy Behind Tornado Cash

Tornado Cash is a crypto mixing protocol designed to increase transaction privacy by obfuscating the flow of funds on the blockchain. However, it has come under scrutiny due to its reported use by malicious actors, including the North Korean state-backed hacking group, Lazarus.

This association led the US Treasury’s Office of Foreign Assets Control (OFAC) to sanction Tornado Cash in August 2022. The sanctions sparked significant debate about the balance between privacy and regulation.

Sanctions Overturned & Legal Developments

In January 2025, a civil lawsuit filed by Tornado Cash users challenged OFAC’s sanctions. The court overturned these sanctions, and by March 2025, Tornado Cash was officially removed from OFAC’s blacklist.

Financial Support For Roman Storm’s Defense

Millions Raised So Far

According to Storm’s official website, his Legal Defense Fund has raised over $3.2 million, reaching 65% of a new $5 million fundraising target. Additionally, the Ethereum Foundation has pledged $750,000 to help support Storm’s legal defense efforts.

Total Donations Made Via The Ethereum Foundation & Storm’s Legal Defense Fund Support

Source: Freeromanstorm.com

Courtroom Arguments In The Tornado Cash Trial

Prosecutors’ Claims

The prosecution alleges that Roman Storm:

• Conspired to launder money
• Violated US sanctions
• Operated an unlicensed money-transmitting business related to Tornado Cash

Defense Strategy

Storm’s legal team counters these allegations by arguing that:

• Tornado Cash is a decentralized, immutable protocol, not a business under Storm’s direct control.
• A 2019 Financial Crimes Enforcement Network (FinCEN) guidance exempts developers of anonymizing software from registering as money transmitters.
• Writing and publishing code should be protected under the First Amendment as free speech in the United States.

The trial is currently scheduled to wrap up by mid-August, with a verdict expected soon.

Impact On Tornado Cash’s Co-Creators

Roman Storm developed Tornado Cash alongside Alexey Pertsev and Roman Semenov in 2019. This collaboration was inspired by Ethereum co-founder Vitalik Buterin’s encouragement to explore crypto privacy solutions.

Status Of Co-Creators

• Alexey Pertsev: Found guilty of money laundering in the Netherlands in May 2024. He is appealing the verdict and was released under strict conditions, including electronic monitoring.
• Roman Semenov: Remains at large and is currently on the FBI’s wanted list.
  

FAQ

What is the Tornado Cash trial about?

The trial concerns allegations that Roman Storm and others used Tornado Cash to launder money and violated US sanctions, leading to charges of operating an unlicensed money-transmitting business.

Why is Tornado Cash controversial?

While Tornado Cash enhances privacy on blockchain transactions, it has been linked to illicit use by hackers and sanctioned entities, prompting regulatory action.

How much has been raised for Roman Storm’s defense?

Over $3.9 million has been raised so far, including $750,000 from the Ethereum Foundation, with an urgent appeal for an additional $1.5 million.

What legal defenses are being used in the trial?

Storm’s team argues that Tornado Cash is decentralized, protected free speech, and that developers of such software aren’t required to register as money transmitters according to FinCEN guidance.

What could be the impact of the Tornado Cash trial ruling?

A conviction could criminalize privacy tools, hinder decentralized finance innovation, and restrict privacy rights for crypto users worldwide.