Another Tornado Cash defendant, Roman Storm, is gaining allies as the crypto community awaits the verdict for Alexey Pertsev’s trial in the Netherlands. The industry is rallying to support Storm, who is set to face trial in the US in September. This case, along with Pertsev’s trial, could significantly impact the future of crypto privacy.
Industry groups have filed briefs in support of Roman Storm, the Tornado Cash developer, as the cases could potentially reshape the landscape of financial privacy and other fundamental aspects of the crypto industry. If both developers are found guilty, it is feared that it could have a chilling effect on innovation and investment in the sector.
Several American blockchain associations have come forward to advocate for Storm’s defense, emphasizing that a guilty verdict for Storm could expose open source software developers worldwide to criminal liability for their contributions. Storm, who is currently free on a $2 million bond, will be tried on charges including money laundering, conspiracy to operate an unlicensed business, and violating sanction laws in a federal court in New York.
The legal action in both the US and Europe signifies an unprecedented effort by authorities to regulate the decentralized crypto ecosystem. These cases highlight the clash between the advancements of decentralization and the legal constraints of the pre-blockchain era.
In 2022, the US Treasury Department sanctioned Tornado Cash, a decentralized protocol that obfuscates crypto transaction histories, for allegedly enabling illicit actors to launder gains from crypto hacks and heists. Following this, Pertsev was arrested in the Netherlands, and Storm, along with another developer named Roman Semenov, was charged and arrested in the US.
Supporters of Tornado Cash argue that the protocol provides a legitimate solution to privacy concerns on the Ethereum blockchain, where transaction histories are public and immutable. They assert that the mixer protects user privacy and is not intended to facilitate illicit activities.
