Crypto industry leaders have sent a letter urging the White House to drop the criminal case against Roman Storm – co-founder of Tornado Cash, who is accused of money laundering. Can pressure from the crypto community change the landscape? Let's analyze in detail.
Pressure from the Crypto Community: Drop the Case Against Roman Storm
On Monday (04/21/2025), the DeFi Education Fund, along with venture capital funds such as Paradigm, Multicoin Capital, and 6th Man Ventures, sent a letter to David Sacks – crypto and AI advisor to the White House – requesting the U.S. Department of Justice (DOJ) to withdraw the 'unlawful' charges against Roman Storm, co-founder of Tornado Cash. Storm was indicted in the Southern District Court of New York on charges of money laundering, violating U.S. sanctions, and operating an unlicensed money transmission service. The trial is expected to take place in July in Manhattan.
Tornado Cash is a privacy protocol on the Ethereum blockchain that allows for anonymous transactions – a feature that attracts users concerned about privacy but is also exploited by criminals to launder money from hacks and scams. Prosecutors allege Storm laundered $1 billion in illegal funds, but Storm and supporters assert he does not control how others use the protocol, likening the indictment to suing a gun manufacturer for shootings.
Change in Perspective from DOJ: Opportunity for Storm?
In early April, #DOJ announced a memo dated 04/08, stating that it would not pursue coin mixing services (mixers) like Tornado Cash due to the actions of end-users or unintentional regulatory violations. This memo seems to provide hope for Storm, as it reflects guidance from the Treasury that peer-to-peer protocols are not money transmission services. The DeFi Education Fund argues that the DOJ should withdraw the charges, as considering Tornado Cash as a money transmission service contradicts this guidance.
However, the DOJ maintains it will prosecute business owners who knowingly handle 'dirty money.' Prosecutors argue that Storm was aware of this, complicating the case. The letter from the crypto community emphasizes: 'This legal environment not only slows innovation but also freezes it, empowering politically motivated enforcement actions and threatening every open-source developer.'
Impact on the Crypto Market
Storm's case is drawing significant attention in the crypto industry:
Increased awareness of privacy: #TornadoCash is a symbol for privacy on the blockchain, and this case could shape how privacy protocols are regulated in the U.S.
Impact on innovation: If Storm is convicted, developers may hesitate to build similar protocols, slowing down the progress of innovation in the DeFi and blockchain space.
Support for the ecosystem: Support from major funds like Paradigm shows that the crypto community is united, similar to moves from Stripe (stablecoin payments) and Cardone Capital (buying 350 BTC), driving industry growth.
Future Prospects
Storm's case could set an important precedent for the crypto industry in the U.S., especially as the Trump administration has more favorable policies (the Fed retracts crypto regulatory restrictions, SEC opens a 'sandbox' with El Salvador). If the DOJ withdraws the charges, this would be a significant victory for privacy and blockchain innovation, helping developers feel more confident in building decentralized protocols.
Conclusion: Will Tornado Cash Be Exonerated?
Pressure from the crypto community, led by the DeFi Education Fund, is prompting the White House to reconsider the case against Roman Storm – who is accused of money laundering through Tornado Cash. Although the DOJ has changed its stance, Storm's fate remains unclear. This case not only affects privacy on the blockchain but could also shape the future of crypto innovation in the U.S. Investors and developers should closely monitor developments to assess the impact.
Risk warning: Crypto investment carries high risks due to price volatility and legal uncertainty. Please consider carefully before participating.