Tornado Cash Developer Roman Storm Warns of Threat of Retroactive Prosecution

Roman Storm, a developer behind the decentralized privacy protocol Tornado Cash, has raised concerns within the open source community regarding potential retroactive prosecution by U.S. authorities. Storm questioned the certainty of avoiding charges under the premise that building non-custodial DeFi platforms might be considered illegal, sparking a debate over the legal risks faced by open-source crypto developers. This comes amid Storm’s recent conviction for operating an unlicensed money transfer service, intensifying discussions on crypto regulation and privacy rights in the evolving landscape of blockchain.

Legal Uncertainty Looms for DeFi Developers

Roman Storm, a key figure behind Tornado Cash, posed a provocative question to the open-source crypto community regarding the potential risks of legal action by the U.S. Department of Justice (DOJ). He asked how developers can be certain they won’t face charges as money service businesses for creating decentralized finance platforms, which are inherently non-custodial. Storm’s concern stems from the DOJ’s approach, which has historically blurred the lines for DeFi and privacy-focused protocols.

Storm, recently convicted of conspiracy related to unlicensed money transmission, insists that Tornado Cash operates purely as a decentralized protocol, beyond the control of any single entity. In court documents, Storm emphasized, “Our company does not have any ability to affect any change, or take any action, with respect to the Tornado Cash protocol — it is a decentralized software protocol that no one entity or actor can control.”

Despite his conviction, Storm’s legal team recently filed a motion for acquittal, arguing that the government’s case was flawed. The legal attack against Tornado Cash has sent shockwaves through the crypto community, which regards privacy-preserving protocols as vital to the future of digital assets.

The Fight for Privacy in a Changing Regulatory Landscape

Following Storm’s conviction, legal experts have debated whether the DOJ will pursue further charges related to money laundering or sanctions violations. The jury, during its deliberations, was deadlocked on multiple counts, ultimately convicting Storm only on the charge of operating an unlicensed money transmission.

Jake Chervinsky, chief legal officer at Variant Fund, noted that “if the Trump administration intends to position the United States as a global leader in crypto innovation, then the DOJ should refrain from retrying the deadlocked charges.”

Moreover, Matthew Galeotti, acting assistant attorney general for the DOJ’s criminal division, indicated that the department would not pursue retrials in Storm’s case and clarified that writing code, in itself, without malicious intent, should not constitute a crime. His remarks highlight a cautious approach to balancing innovation and regulation within the American crypto landscape.

As the debate continues, the broader implications for privacy-centric protocols, DeFi development, and crypto regulation remain uncertain, underscoring the ongoing clash between decentralized innovation and government oversight in the US.

This article was originally published as Tornado Cash Developer Roman Storm Warns of Threat of Retroactive Prosecution on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.