As his U.S. criminal trial approaches in less than two weeks, Roman Storm, a co-founder and developer of the cryptocurrency mixing service Tornado Cash, has kept his plans regarding testifying unclear. In a recent interview, Storm's legal team stated they would address allegations that he personally profited from illicit funds through his role at Tornado Cash. However, Storm himself has not committed to testifying in his defense against charges of money laundering, conspiracy to operate an unlicensed money transmitter, and conspiracy to violate U.S. sanctions.
Storm indicated that the decision on whether he will testify will be made closer to the trial date. "This is the decision that we will make," Storm said, "I don't have a 100% answer right now. I may or may not".
The U.S. authorities indicted Storm in 2023, about a year after the Treasury Department's Office of Foreign Assets Control sanctioned addresses connected to Tornado Cash. The agency stated that the mixing service facilitated money laundering with cryptocurrency stolen by North Korea-based hackers, the Lazarus Group. Roman Semenov, another Tornado Cash developer named in the same indictment, remains at large. Alexey Pertsev, another co-founder and developer, was found guilty of money laundering in the Netherlands and sentenced to over five years in prison.
Leading up to the trial, Storm has faced several hurdles. He alleges that the Justice Department is hindering his ability to mount a strong defense by rejecting key expert witnesses. While Storm initially proposed six expert witnesses, the DOJ rejected five outright and imposed strict limitations on the sixth, Matthew Edman, a blockchain expert. The DOJ has argued that most of the proposed expert witnesses are irrelevant to the core issue of Storm's alleged role in violating international sanctions, criticizing their selection process and methodologies. They contend that testimonies on topics like digital privacy, blockchain technology, tokenomics, and KYC rules are inappropriate, lack reliable methodology, and could confuse the jury.
Since his arrest, Storm has received substantial support from the crypto industry, with many decrying his indictment as an attack on developers and privacy. Ethereum co-founder Vitalik Buterin, Paradigm founder Matt Huang, and the Ethereum Foundation have contributed to Storm's legal fund, which reportedly exceeds $750,000.
Storm's trial, initially set for December 2024, was postponed to April 14, 2025, to allow time to resolve disputes over expert witness disclosures. The trial has now been further delayed to July 14. Storm faces charges of conspiracy to commit money laundering, sanctions violations, and operating an unlicensed money-transmitting business, potentially facing up to 45 years in prison if convicted. He has pleaded not guilty and is currently out on a US$2 million bond.
The case has stirred controversy within the crypto community, raising concerns about the future of decentralized technologies and the right to privacy. Critics argue that holding developers responsible for users' actions could stifle innovation and deter the creation of decentralized applications (dApps) that prioritize user privacy. Some crypto advocates criticized the DOJ for planning to pursue part of the charge around unlicensed money transmitting.
Despite the challenges, the DOJ has dropped part of one charge against Storm, specifically an allegation of operating an unlicensed money transmitting business. However, they plan to proceed with charges related to money laundering, some related to unlicensed money transmitting, and conspiracy to violate the International Emergency Economic Powers Act. This decision aligns with an April 2025 DOJ memo calling for an end to "regulation by prosecution" and urging the DOJ to stop indicting registration violations, but the DeFi Education Fund noted that it is "not a total fix to the errors made by the DOJ in this case".
