In two weeks, Tornado Cash co-founder Roman Storm faces a trial in the Southern District of New York, accused of conspiracy to wash his funds, avoid penalties and run a power transmission business without a license. Possible conviction results include prisons that have been in prison for more than 40 years. Days in this process, Storm warned in an interview about the impact of his case: “If I lose my case, he defines it to me,” he said in a recent interview, highlighting the impact of legal defeat on the impact of distributed fiscal ecosystems (DEFI).
Storm, a Russian software engineer who moved to the US, developed tornado cash. As reported by Cryptonotics, this is a privacy protocol designed to protect users’ transactions by allowing deposits and retreats without revealing public information. “We wanted to solve the problem of people who wanted to legally use Ethereum,” he explained, emphasizing that the protocol is under the control of the entity and its decentralized, immutable design is unstoppable. It’s similar to the Bitcoin or Ethereum network itself.
The Storm trial, which begins with a previous hearing on July 8th, places a key discussion of the responsibility of open source software developers at the center compared to excessive use by third parties.
According to Storm, the US Department of Justice (DOJ) pursues it for end-user behaviour. Although we cannot control protocols or contact with illegal actors.like North Korean group Lazarus, accused of using cash tornadoes to wash stolen funds. “I have no communication with criminals,” he said.
The case also highlights regulatory tensions. The Storm 2019 Fincen Guide mentioned in the interview exempts anonymous software suppliers who issue Money Transmission licenses, a hub that gave them confidence to develop cash tornadoes. However, the DOJ appears to ignore these guidelines, maintaining an offensive position in which the storm is considered “politics.”
Furthermore, the recent decision of the Court of Appeals for the Fifth Circuit has not changed the position of the DOJ because it negated OFAC’s sanctions on tornado cash due to consideration of the code that is out of control.
The Co-founder expressed concern about the impact of his case on technological innovation. “If I lose, I don’t think it’s good for anyone in the world of defi or software development,” he said. It could discourage developers from innovating in the US.
The horror is reinforced by similar cases, including developers who, according to Storm, avoided launching the project for fear of legal retaliation inspired by his situation.
Storm, who was arrested in August 2023, is also facing financial difficulties. at the moment Raise funds for your legal defense,This requires important resources due to the technical complexity of the case. Despite the adversity, it is optimistic and trusts the US judicial system and the protection that the initial amendments provide to the code as a form of expression. “I don’t regret what I did,” he said.
The outcome of the Storm trial not only determines its future, but also may secure a positive or negative legal precedent. For the development of distributed technology in the United States. Meanwhile, the developer hopes that his case will make the need for clear regulations to protect open source software developers compared to excessive use by third parties.