Paradigm Supports Tornado Cash Co-Founder, Slams Legal Charges
- Paradigm supports Roman Storm in US trial
- Cryptocurrency developers could be affected by precedent
- Tornado Cash cryptocurrency remains at the center of legal dispute
Cryptocurrency-focused venture capital firm Paradigm has filed an amicus brief in support of Tornado Cash co-founder Roman Storm, whose trial is set to begin on July 14. release , the company warned that the outcome of the lawsuit could directly influence software development in the United States.
According to Fred Ehrsam, Paradigm’s general counsel, prosecutors are mistaken in treating decentralized software as equivalent to an illegal money transmission service. The firm argues that this interpretation is inconsistent with the text of the legislation, FinCEN guidelines, and established legal precedent. “The irrationality and unfairness of these charges cannot be overstated,” Paradigm said. “The Treasury Department has long recognized that developers who publish software are not money transmitters.”
In the legal document, Paradigm argues that the jury cannot convict Storm without proof that he knew that the funds transacted were linked to illicit activities. According to the text, the jury must understand that it is not possible to hold an open source developer criminally liable for operations carried out by third parties independently.
Roman Storm was charged in 2023 with conspiracy to commit money laundering and violating economic sanctions in connection with his involvement in Tornado Cash. Despite the government dropping some charges last month, the money laundering and conspiracy charges under the International Emergency Economic Powers Act remain active.
I'm still severely underfunded. 😢 pic.twitter.com/jpl7VxUExS
— Roman Storm 🇺🇸 🌪️ (@rstormsf) June 16, 2025
Storm’s defense is seeking to raise $2 million for legal costs. The Ethereum Foundation has already contributed $500. In a recent post on the X platform, Storm vented: “I have poured my soul into Tornado Cash — a non-custodial, trustless, permissionless, immutable, and unstoppable piece of software […] If I lose, DeFi dies with me.”
Tornado Cash was sanctioned by the Treasury Department in 2022. However, this sanction was temporarily lifted in March of this year, reigniting the debate over freedom of development and use of decentralized protocols.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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