Roman Storm, co-founder of the privacy protocol Tornado Cash, is urgently seeking an additional $1.5 million in funding as his legal battle with U.S. authorities enters its third week.

On July 26, Storm posted on X, stating that his legal team is working around the clock and that expenses are “skyrocketing” due to expert witnesses, ongoing research, and legal proceedings.

“Sounds crazy, but I need ~$1.5 million again,” Storm wrote, referring to the increasing legal and operational costs.

The Crypto Community Has Already Donated Millions

Despite having already raised over $3.2 million, Storm is now pushing to reach a total fundraising goal of $5 million. His campaign, organized through freeromanstorm.com, continues to receive donations mostly in cryptocurrencies.

One of the largest contributions came from the Ethereum Foundation, which initially pledged $500,000 and later committed to matching community donations up to $750,000.

Storm emphasized how intense the process has become: “We’ve forgotten what normal sleep feels like. Every hour counts—and so does every dollar.”

Before the trial began, Storm had already requested $500,000 to cover what he described as a “critical shortfall.” The estimated legal budget has since surged from $3.5 million to $5 million, driven by the extended timeline and growing legal complexity.

What Charges Is Roman Storm Facing?

The U.S. Department of Justice has charged Storm with:

🔹 Conspiracy to commit money laundering

🔹 Conspiracy to violate the International Emergency Economic Powers Act (IEEPA)

🔹 Operating an unlicensed money transmission business

Authorities allege that Tornado Cash laundered over $1 billion in cryptocurrency—some of it linked to the infamous North Korean Lazarus Group.

Storm, however, maintains his innocence. His defense argues that Tornado Cash is a decentralized, non-custodial protocol whose smart contracts operate autonomously after deployment, without centralized control.

The defense warns that criminalizing the creation of open-source code could set a dangerous precedent for freedom of expression and innovation in the blockchain space.

They also point to 2019 guidance from FinCEN, which states that developers of privacy tools are not necessarily obligated to register as money service businesses if they do not hold assets or directly facilitate transfers.

Trial Outcome Could Set a Precedent for DeFi Developers

The trial, presided over by Judge Katherine Polk Failla in the Southern District of New York, began on July 14. While it was initially expected to last two weeks, the timeline has since been extended, with a verdict now anticipated around August 11.

U.S. prosecutors aim to prove that Storm knowingly allowed Tornado Cash to be used for illegal purposes and failed to implement safeguards to prevent abuse.

The outcome of this case could set a precedent for whether developers of decentralized protocols can be held liable for how their code is used—even without active operational control.


#TornadoCash , #Cryptolaw , #defi , #Web3 , #CryptoCommunity

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!

Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“