Roman Storm – co-founder of Tornado Cash – is facing money laundering charges in the U.S. However, he has just received strong support from the Paradigm investment fund and the EFF civil liberties organization, as his legal battle could significantly impact the future of privacy technologies in crypto.

The venture capital fund #paradigm announced a $1.25 million grant to support Storm in the legal battle. Paradigm co-founder, Matt Huang, described the charges against Storm as "an attack on software developers," which could create a dangerous precedent when programmers are held responsible for how others use the technology they create.

Storm expressed gratitude on social media:

"This support is not just for me, but for all the developers fighting for fairness and innovation."

EFF: "This is an attack on privacy rights."

Alongside Paradigm, the Electronic Frontier Foundation (#EFF ) has also spoken out in defense of Storm by filing a legal brief (amicus brief).

EFF argues that prosecuting software developers simply because their technology is abused is an overreach. They compare Tornado Cash to cash or encryption tools, which can also be misused but cannot be banned for that reason.

EFF also criticized the use of the International Emergency Economic Powers Act (IEEPA) in this lawsuit, arguing that regulations on privacy technologies should be decided by Congress, rather than being interpreted arbitrarily.

Storm and co-founder Roman Semenov were indicted by the U.S. Department of Justice in August 2023 on charges of money laundering, violating sanctions, and running an illegal money transfer service. The trial for Storm is scheduled for April 14, 2025, and the outcome could have widespread implications for the decentralized finance (DeFi) sector and privacy in crypto.

Recently, legal decisions regarding #TornadoCash have undergone many changes:

  • September 2024: The New York court rejected the motion to dismiss the charges against Storm, stating that although Tornado Cash has immutable aspects, there are still factors within the developer's control.

  • January 2025: The Texas court overturned the U.S. Treasury's sanctions against Tornado Cash, arguing that immutable smart contracts cannot be considered property under IEEPA.

  • November 2024: The U.S. federal court also issued a similar ruling, affirming that the Treasury exceeded its authority by imposing sanctions on immutable smart contracts.

The Future of Privacy Technologies in Crypto

The lawsuit against Roman Storm raises a significant question: Should developers be held legally responsible simply because their technology is exploited by bad actors? If Storm loses the case, many privacy-protecting technologies in crypto could be threatened.

Currently, with the support of Paradigm, EFF, and the community, Storm's legal battle could become one of the most important lawsuits in crypto history.